Futronic, Inc. In Reducing Cost For The In-House Services

PROJ410: Week (3) – Assignment: Case Study
November 14, 2010
Stevie W. Weaver
(d03490478) Student
DeVry University
Professor Roy Chuang

Today I will discuss options that would be good for Futronic, Inc. in reducing cost for the business. We will look at outside sourcing for some of the in-house services. We will discuss keeping the business in house and look to outsource some of the units. The benefits of outsourcing will not only save our business money, it can help us grow and hire more local employees with the money we save. What are the main reasons people outsource? * Lower worker costs * Ability to concentrate on core functions * More specialized workers to provider better customer service * No overhead, everything
* Have more people for less money
It’s time to leverage our time by saving it! The table below will give us some relevant facts for and against outsourcing. FUTRONICS CENTRAL STORE | COMPARISON ISSUE | OUTSOURCING | Serve forty-two area sites | Warehouse | Distribution Warehouse | 500 items | Number of Items Stocked | 600 items + This would give us a greater chance to grow | To the building dock or reception area | Delivery | Secretaries’ desk | Cost of maintaining product in-house we have. Building, electric, water, etc. | Cost | Cheaper cost because we would not have to worry about the purchasing and maintaining storage of product. | Lengthened order times | Service Complaints | Under specific guideline on order processing | With this information there are areas that we could cut back on and save the company both expenditures and overhead cost. Of course we would like to keep the staff that we have now and maybe try to move them around in other areas of the business. But even still we should be able to save money for the business. With outsourcing, we would get specific employees of popular positions which include: * Call Center Agent * Accounting *
The companies that went with clear outsourcing strategies have enjoyed massive benefits, out thought their competition and are operating at an enviable position. (Damani, 2010)
Futronics is looking for ways to save money and grow the business. There seems to be things that come up that we are not 100% of but there are things we could do to increase product, revenue, and increase the gains of the business.
As I research the possibilities, I have come to the conclusion that Futronics should look at the possibilities of outsourcing some of the areas in the business. Futronics should maintain control of the marketing and sales of our products. We should also maintain control of our financial areas in the company. We should look at the idea of outsourcing the warehousing of product, and delivery of sales.
With these possibilities, I think that our business can and will gain more respect with the competition and be able to take the business to higher heights that we have never been before. This will give us a great opportunity to grow our business and have a great satisfied customer