RMG 434 Chapter Notes - Chapter 6: Efficiency Ratio, Offshoring

• School: Ryerson University
• Department: Retail Management
• Course: RMG 434
• Professor: Emad Samwel

Document Summary

Better economies of scale can be achieved if orders are aggregated. Better flow of products throughout the supply network. Good procurement process to facilitate coordination with suppliers. Design collaboration (products are easier to manufacture and distribute) Appropriate supplier contracts: make, buy or outsourcing foreign company, offshoring. Make: the company will design and manufacture. Buy: purchased finished goods designed by other companies. Outsource: company may design its own products or outsource/manufacture to another local or. Moving one or more departments to another country. Management is still involved in day-to-day operations. Seek business efficiency and cost control: outsourcing. One or more business functions to be performed by a sub=ontractor. May be outsourced locally or to another company in another country. Management is not involved in day-to-day operations. Advantages: cheaper labour cost, increased capacity, access to skilled labour, taking advantage of local taxation, access to unique technology and expertise.