1. Focus on Core Business:
Organizations can dedicate more time to improving their internal
operations by focusing on areas that are within their expertise
and meeting their customers' needs more efficiently.
2. Reduce Operating Costs:
Many companies turn to outsourcing only to reduce labor costs.
Outsourcing can also save money on real estate, insurance, training,
recruiting, and utility costs. It can also generate revenue by
selling off or donating old equipment that was used to produce
the outsourced product.
3. Share The Risk:
If all of your work is done in one plant, an outage or labor strike
could affect your volume of business, or make you unable to deliver
to your customers on time. By spreading work to multiple locations,
customer deliveries can still be maintained by balancing production
4. Accommodate Peak Loads:
Oswego Industries, Inc. could act as a “production source
on standby” that would supplement your existing work force
if there was a sudden surge in customer demand. This would eliminate
hiring of temporary workers and reduce costly overtime.
5. Avoid Shipping Delays:
Oswego Industries, Inc. incorporates their own shipping department.
It can ship direct to the end user or any other designated distribution
or warehouse facility as scheduled by the customer. Incoming shipments
of raw materials can also be picked up at localized ports or freight
terminals and handled by our internal transportation group.
6. Accelerate Reengineering Benefits:
Reengineering calls for dramatic improvements in performance such
as cost, quality, service and speed. The need to increase efficiency
can come into direct conflict with the need to invest in core businesses.
By outsourcing a non-core function, organizations can begin to
see the benefits of reengineering.