Tuesday, October 20, 2009

2009 Bari Jay Shimmer Collection

Choice Make or Buy

For a company, as we have said, can be difficult to make the decision Make or Buy, and then choose to run the logistics operations internally, or outsource. When a company

faces this kind of choice, it is usually due to an exceptional situation in the management, that does not fall into the "normal service".
For example, entry into major new markets, a crisis of sales with the consequent need to reduce costs, or acquisition of another company that increased volumes and high rates of turnover.

In any case, this decision results in a range of strategic, because it is not reversible only after a certain number of years.
fact, choose to buy or logistical influences and directs all subsequent business decisions, and directions investment company.

Summarizing the constraints that this choice generates, and in one case or another, we can consider the following.


Make Choice Choose to do logistics involves the need to invest in
- Storage: to build a warehouse, and amortized means a heavy financial commitment for at least 10 years, given the high costs of these investments
- Software: the costs construction and management information system are high, not to mention those of maintenance and updating
- Staff: to have the logistics in the house means having staff who works there, then a fixed cost that we will always, regardless of the volumes that the company will in future

Choice Buy
choose to buy a logistics services, implies a different view of management:
- Consideration of the service to buy: to gauge used to evaluate those who believe
- Put in the race vendors who are able to offer that service
- Choose the vendor that offers the minimum price, and that gives more guarantees.
- Create a corporate structure able to monitor and participate in the management of logistics ousourcing dates.

We shall return to the topic of outsourcing, analyzing the ways in which to do it better.

Good Logistics!

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