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April 25, 2006
Burning Question
What is your stance on procurement outsourcing?
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Comment
6 CommentsI think procurement outsourcing is RUINING this country!
April 25, 2006 3:23 PMIt is my opinion that any organization should be supported by operations centers in each of its geographical sales regions.
The organization needs to have local employees from the country in which it is doing business to perform its core functions, sales, AR, AP, customer service, warehousing shipping, etc. Well-trained local employees who are dedicated to their chosen trades will be much more cost effective in meeting the changing needs of the organization's customers.
I have been working as an employee and as a consultant for large international corporate organizations for the last 25 years in their corporate offices. All of the outsourcing to overseas resources that I have witnessed have led to declines in customer service levels, often impacting the organization's bottom line. Corprorate management often shifts the focus to other problems, blaming market events rather than correcting the problems and restructuring. Sometimes they are locked into long-term contracts with the outsourcing companies. Sometimes they do not want to attract negative shareholder interest by reversing course.
Just my thoughts.
April 26, 2006 8:40 PMWe are a small company that uses outsourcing extensively! We could not have in house all of the equipment that we would require to service our customers. All of the outsourcing is done in the US or Canada because of the our common language, proximity for fielding a problem and for relative low cost of transportation. In plant, we take care of production not available in outsourcing or requiring short lead time response.
May 9, 2006 5:08 PM
