Outsourcing
Outsourcing, as a trend over the past few decades, has benefitted both consumers and companies. The ability to seek lower-cost labor, materials, and capacity has drastically reshaped the modern-day business environment. Have we hit peak outsourcing?
Outsourcing is prevalent in manufacturing, but it can be found in any industry where companies hire other providers to fill service needs at a lower cost than they could otherwise perform internally. Read this article, which discusses why contract manufacturing occurs and presents its opportunities and risks.
GLOSSARY
Benefit
An advantage, help or aid from something Employee benefits and (especially in British English) benefits in kind (also called fringe benefits, perquisites, perqs or perks) are various non-wage compensations provided to employees in addition to their normal wages or salaries. An advantage, help, or aid from something.
Business model
The particular way in which a business organization ensures that it generates income, one that includes the choice of offerings, strategies, infrastructure, organizational structures, trading practices, and operational processes and policies.
Capacity
The maximum that can be produced on a machine or in a facility or group.
Capital
Money and wealth. The means to acquire goods and services, especially in a non-barter system.The uppermost part of a column. Money and wealth; the means to acquire goods and services, especially in a non-barter system. Already-produced durable goods available for use as a factor of production, such as steam shovels (equipment) and office buildings (structures).
Corporate
An incorporated entity is a separate legal entity that has been incorporated through a legislative or registration process established through legislation.
Demand
The desire to purchase goods or services, coupled with the power to do so, at a particular price. The desire to purchase goods and services.
Design
To plan and carry out (a picture, work of art, construction etc. ).
Economies of scale
A process where an increase in quantity will result in a decrease of average cost of production (per unit). The characteristics of a production process in which an increase in the scale of the firm causes a decrease in the long run, average cost of each unit. The cost advantages that an enterprise obtains due to expansion. As the scale of output is increased, factors such as facility size and usage levels of inputs cause the producer's average cost per unit to fall. The characteristics of a production process in which an increase in the scale of the firm causes a decrease in the long run average cost of each unit. The characteristics of a production process in which an increase in the scale of the firm causes a decrease in the long-run average cost of each unit.
Economy
Collective focus of the study of money, currency and trade, and the efficient use of resources. The system of production and distribution and consumption. The overall measure of a currency system; as the national economy. The system of production and distribution and consumption. The overall measure of a currency system.
Efficiency
The extent to which a resource, such as electricity, is used for the intended purpose; the ratio of useful work to energy expended. The extent to which time is well used for the intended task. Improved efficiency was a principle goal of progressives, one they thought attainable by the application of scientific and rational thought to social problems. The extent to which time is well used for the intended task.
Facility
The physical means or contrivances to make something (especially a service) possible; the required equipment, infrastructure, location etc.
Flexibility
The quality of being flexible; suppleness; pliability.fluctuation A motion like that of waves; a moving in this and that direction.
Good
An object produced for market.
Intellectual property
Any product of someone's intellect that has commercial value: copyrights, patents, trademarks, and trade secrets. Intellectual property (IP) is a juridical concept that refers to creations of the mind for which exclusive rights are recognized. Any product of someone's knowledge that has commercial value: copyrights, patents, trademarks and trade secrets.
Lead
Potential opportunity for a sale or transaction, a potential customer.
Lead time
The amount of time between the initiation of some process and its completion, e.g. the time required to manufacture or procure a product; the time required before something can be provided or delivered.
Management
The act of getting people together to accomplish desired goals and objectives using available resources efficiently and effectively. administration; the process or practice of managing.administration; the process or practice of managing Administration; the process or practice of managing.
Manufacture
The action or process of making goods systematically or on a large scale.
Outsourcing
The transfer of a business function to an external service provider The transfer of a business function to an external service provider. The transfer of a business function to an external service provider.
Performance
The act of performing; carrying into execution or action; execution; achievement; accomplishment; representation by action; as, the performance of an undertaking of a duty. The act of performing; carrying into execution or action; achievement; accomplishment; representation by action, as the performance of undertaking a duty.
Price
The price is the amount a customer pays for the product. The quantity of payment or compensation given by one party to another in return for goods or services. The cost required to gain possession of something.
Process
A series of events to produce a result, especially as contrasted to product. in reference to capabilities, a process is how the capability is executed. An outgrowth of tissue or cell.
Product
Any tangible or intangible good or service that is a result of a process and that is intended for delivery to a customer or end user. a chemical substance formed as a result of a chemical reaction. Anything, either tangible or intangible, offered by the firm as a solution to the needs and wants of the consumer; something that is profitable or potentially profitable; goods or a service that meets the requirements of the various governing offices or society.
Quality control
Quality control (QC) is a procedure or set of procedures intended to ensure that a manufactured product or performed service adheres to a defined set of quality criteria or meets the requirements of the client or customer. A control, such as inspection or testing, introduced into an industrial or business process to ensure quality.
Raw materials
A raw material or feedstock is the basic material from which a good product is manufactured or made, frequently used with an extended meaning. For example, the term is used to denote material that came from nature and is in an unprocessed or minimally processed state; e.g., raw latex, iron ore, logs, crude oil or seawater. A raw material is the basic material from which a product is manufactured or made. Materials and components scheduled for use in making a product. A raw material is the basic material from which a good product is manufactured or made, frequently used with an extended meaning.
Risk
The potential (conventionally negative) impact of an event, determined by combining the likelihood of the event occurring with the impact, should it occur. The potential that a chosen action or activity (including the choice of inaction) will lead to a loss (an undesirable outcome). To incur risk [of something].
Security
The condition of not being threatened, especially physically, psychologically, emotionally, or financially. proof of ownership of stocks, bonds, or other investment instruments.
Services
That which is produced, then traded, bought or sold, then finally consumed and consists of an action or work.
Standard
Something used as a measure for comparative evaluations. A level of quality or attainment.
Supplier
One who supplies; a provider.
Supply provisions
The amount of some product that producers are willing and able to sell at a given price, all other factors being held constant.
Supply chain
A supply chain is a system of organizations, people, technology, activities, information and resources involved in moving a product or service from supplier to customer. A supply chain is a system of organizations, people, technology, activities, information, and resources involved in moving a product or service from the supplier to the customer. Supply chain activities transform natural resources, raw materials, and components into a finished product that is delivered to the end customer. A system of organizations, people, technology, activities, information, and resources involved in moving a product or service from the supplier to the customer. A system of organizations, people, technology, activities, information, and resources involved in moving a product or service from supplier to customer. A system of organizations, people, technology, activities, information and resources involved in moving a product or service from supplier to customer. is a system of organizations, people, technology, activities, information and resources involved in moving a product or service from suppliers to consumers. A system of organizations, people, technology, activities, information. and resources involved in moving a product or service from supplier to customer.
Wage
An amount of money paid to a worker for a specified quantity of work, usually expressed on an hourly basis.