Essay: Outsourcing production of ECUs-Kuiper Leda Company

12 Oct

Essay: Outsourcing production of ECUs-Kuiper Leda Company

Sample Essay

There is no doubt that Kuiper firm needs a remedy like a sick person in a hospital desperate for the doctor’s help to see the next day. In this case, meeting the increased current demand should be a priority for Kuiper. To meet current skyrocketing demands, common supply chain knowledge calls for outsourcing for some of the orders. For Kuiper, outsourcing implies that the company shall at a great extend reducing risks, level out seasonal fluctuations, increasing efficiency, gain better control of costs, and minimize capital expenditures, therefore improving efficiencies through economies of scale. Furthermore, through outsourcing the obligation and decisions relating to production are transferred to the external company, as a result, Kuiper Leda Company shall not have to bear additional expense in acquiring inputs and/or new technology to use in production as it does for now.

In emphasizing on the outsourcing option for the Kuiper Leda Company Babb, (2008) states that Outsourcing goes beyond the more common purchasing and consulting contracts because not only are the activities transferred, but also resources that make the activities occur, workforce, facilities, equipment, technology, and other assets, are transferred, in addition to managerial roles which is the responsibilities for making decisions over certain elements of the activities are transferred as well. The outstanding advantage that can not be ignored by even a blind man is the ability to focus on core activities or expertise, markets and customers enabled by the outsourcing option.

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