Lecture 29.pptx marketing management ppt for business

marketing management for business

1. DISCOVER . LEARN . EMPOWER UNIT-2: Supply Chain Integration INSTITUTE –University School of Business DEPARTMENT -Management M.B.A Supply Chain & Logistics Management 22BAT-622 Faculty Name :Mr. Sumit Verma 1 Lecture – 29 : Outsourcing

2. 2 Outsourcing CO Number Title Level CO1 Design competition strategies, including costing, pricing, product differentiation, and market environment according to the natures of products and the structures of the markets. Understand   CO2 Understand the links between production costs and the economic models of supply. Apply   CO3 Understand how different degrees of competition in a market affect pricing and output Analyze Course Outcome CO Number Title Level CO1 At the completion of this course, the student should be able to understand the concepts related to SCM. . Understand   CO2 Students will be able to design and study performance of supply networks and processes in different business contexts Apply   CO3 To understand the global supply chains & risks thereof Analyze Course Objective

3. 3 Source : Shutterstock Topic – 29 Outsourcing

4. Outsourcing

5. Various forms of Sourcing – Outsourcing  To obtain components for products or services from sources outside the organization. – In-sourcing  Transfer tasks that were performed outside the organization into the organization – Offshoring  Outsourcing overseas or in a separate country

6. Various forms of Sourcing – Near-shoring  Outsourcing to cheaper overseas, still geographically closer locations , e.g. Srilanka and Bangladesh – Rural-sourcing  Outsourcing to cheaper rural areas in the country -Volunteering – used in crowd sourcing like, posting questions oninternet and evoke voluntory answers

7. Outsourcing The two main reasons that organizations decide to  outsource  are to reduce costs and to have the ability to focus on core business goals and planning. There has also been a growing increase in  outsourcing  from industries such as Real Estate, Facilities Management and Procurement

8. What is Outsourcing? Outsourcing is the contracting out of a company’s noncore, non-revenue-producing activities to specialists. Outsourcing is a strategic management tool that involves the restructuring of an organization around what it does best — its core competencies. Outsourcing should be carried out from a strategic perspective and integrated into the overall strategy of the organisation by proposing an outsourcing framework. Key strands related to outsourcing including a value chain perspective, core competency thinking and supply base influences into the decision‐making process.

9. How to decide on Outsourcing?

10. Issues Regarding Outsourcing 1. Competitive Agility: the ability to respond quickly to new contractual needs, new opportunities and changing market conditions. 2. Scalability: the need to better manage unforeseen and seasonal demand and access just-in-time talent. It’s no longer primarily about cost 3. Innovation: investment in critical research and development, and the ability to access high-demand, low-supply talent in order to deliver innovative products and services in a timely way.

11. Why do Companies Outsource? – Reduces administrative burdens – Focus on strategic areas – Reduce costs – Focus on core functions – Acquire new skills – Acquire better management

12. Why do Companies Outsource? – Assist a fast growth situation – Avoid labour problems – Focus on strategy – Avoid major investments – Handle overflow situation – Improve flexibility

13. Why do Companies Outsource? – Improve ratios – Jump on to bandwagon – Enhance credibility – Maintain old functions – Improve performance – Begin a strategic initiative

14. Outsourcing Process  Understanding company goals and objectives  A strategic vision and plan  Selecting the right vendor  Management of the relationships

15. Outsourcing Process  A properly structured contract  Open communication  Senior executive support  Use of outside expertise

16. Advantages of Outsourcing

17. Concerns about O utsourcing  Fear of losing control  Lack of confidence  Lack of outsourcing education  Management philosophy and tradition

18. Outsourcing SCM Activities

19. Benefits of outsourcing SCM Activities • Scope for rigorous analytical skills and techniques to operations that are often managed by intuition and “gut feel.” • Operational savings can be realized by improving process performance and optimizing staffing profiles. • Companies can realize additional value through increased process performance, which can improve the entire client supply chain management organization. • Focused investments and resources on companies’ core competencies to help improve speed and efficiency and analytics capabilities

20. Benefits of outsourcing SCM Activities • Instead of having to manage multiple departments and vendors, companies gain a single point of accountability through vendor. • Outsourcing helps to create an integrated, global supply chain management organization, replacing functional or regional silos, with improved decision making capabilities. • Companies can decrease their operational workload, reduce seasonal staff shortages and enhance process compliance. • Companies gain access to worldclass technology faster and cheaper.

21. 21 Resources 1. Essentials of Supply Chain Management (Essentials Series) Paperback – Import, 12 August 2011 by Michael H. Hugo 2. Principles and Practice of Supply Chain Management Hardcover – Import, 3 June 2019 By Judy Dickens 3. Supply chain design and management: Strategic and tactical perspectives by Manish Govil and Jean-Marie Proth

22. Blackboard Assessment Pattern 22 Components HT-1 HT-2 Assignment Surprise Test Business Quiz GD Forum Attendance Scaled Marks Max. Marks 10 10 6 4 4 4 2 40

23. THANK YOU For queries Email: [email protected] 23