Riordan Manufacturing Case Study
Riordan Manufacturing Offshore Outsource Plan
Introduction
Riordan Manufacturing is a $1 billion company owned by Riordan Industries; a Fortune 1000 enterprise with specialization in the field of plastic injection molding. The company has 550 employees with projected annual earnings of $46 million. The original company was Riordan Plastics, Inc. started by founder Dr. Riordan in 1991 and in 1992; it was renamed to Riordan Manufacturing. In 1993, the company expended into the production of plastic beverage containers and in year 2000, company did its latest expansion in China. Riordan Manufacturing products include plastic beverage containers produced at its plant in Albany, Georgia, custom plastic parts produced at its plant in Pontiac, Michigan, …show more content…
A certain loss of control is unavoidable; in this case Riordan Manufacturing needs to make sure that they are comfortable with handing over control before you sign a third-party contract (Bardi & Tracey, 1991).
• Negligence of Strategic Dimensions – By outsourcing logistics systems to offshore company, Riordan needs to make sure formal outsourcing process, adequate cost analysis and a thorough definition of the core business will get sufficient attention.
• Loss of spontaneous communications – By outsourcing Riordan Manufacturing do not see the employees in the hallway or at meetings, there is very little natural or unplanned communication.
• No brand loyalty – Brand Loyalty is another big concern of Riordan Manufacturing to deliver quality service, there is no complete sureties that outsource company will be as loyal to Riordan brand or its customers as compare to own Riordan’s employees. When push comes to shove, offshore outsource company may not go the extra mile for customer …show more content…
Data Security
7. Skill and expertise
8. Country stability
9. Quality testing
10. Cost of managing offshore contract. References
Virtual Organization Portal (2013). Apollo Group https://ecampus.phoenix.edu/secure/aapd/cist/vop/Business/Riordan/index.asp
Greaver, F. M. (1999).Strategic outsourcing: A structured approach to outsourcing decisions and initiatives. AMACOM Division American Management Association.
Arabe, Katrina C. (2002). The Pros & Cons of Offshore Outsourcing, http://news.thomasnet.com/IMT/2002/10/17/the_pros_cons_o/
Rouse, Margaret. (2007). Offshore Outsourcing, http://searchcio.techtarget.com/definition/offshore-outsourcing http://www.evontech.com/outsource-planning.html Bardi, E. J. & M. Tracey, 1991. Transportation Outsourcing: A Survey of US Practices.
International Journal of Physical Distribution & Logistics Management, 21(3), pp. 15-21.
Wallenburg, C. M., 2004. Kundenbindung in der logistik - eine empirische untersuchung zu ihren einflussfaktoren. Bern, Stuttgart, Wien.
Richardson, H.L., 1990. Explore outsourcing. Transportation & Distribution, July, pp. 17-20.
Sheffi, Y., 1990. Third party logistics: Present and future prospects. Journal of Business Logistics, 11 (2), pp.
Introduction
Riordan Manufacturing is a $1 billion company owned by Riordan Industries; a Fortune 1000 enterprise with specialization in the field of plastic injection molding. The company has 550 employees with projected annual earnings of $46 million. The original company was Riordan Plastics, Inc. started by founder Dr. Riordan in 1991 and in 1992; it was renamed to Riordan Manufacturing. In 1993, the company expended into the production of plastic beverage containers and in year 2000, company did its latest expansion in China. Riordan Manufacturing products include plastic beverage containers produced at its plant in Albany, Georgia, custom plastic parts produced at its plant in Pontiac, Michigan, …show more content…
A certain loss of control is unavoidable; in this case Riordan Manufacturing needs to make sure that they are comfortable with handing over control before you sign a third-party contract (Bardi & Tracey, 1991).
• Negligence of Strategic Dimensions – By outsourcing logistics systems to offshore company, Riordan needs to make sure formal outsourcing process, adequate cost analysis and a thorough definition of the core business will get sufficient attention.
• Loss of spontaneous communications – By outsourcing Riordan Manufacturing do not see the employees in the hallway or at meetings, there is very little natural or unplanned communication.
• No brand loyalty – Brand Loyalty is another big concern of Riordan Manufacturing to deliver quality service, there is no complete sureties that outsource company will be as loyal to Riordan brand or its customers as compare to own Riordan’s employees. When push comes to shove, offshore outsource company may not go the extra mile for customer …show more content…
Data Security
7. Skill and expertise
8. Country stability
9. Quality testing
10. Cost of managing offshore contract. References
Virtual Organization Portal (2013). Apollo Group https://ecampus.phoenix.edu/secure/aapd/cist/vop/Business/Riordan/index.asp
Greaver, F. M. (1999).Strategic outsourcing: A structured approach to outsourcing decisions and initiatives. AMACOM Division American Management Association.
Arabe, Katrina C. (2002). The Pros & Cons of Offshore Outsourcing, http://news.thomasnet.com/IMT/2002/10/17/the_pros_cons_o/
Rouse, Margaret. (2007). Offshore Outsourcing, http://searchcio.techtarget.com/definition/offshore-outsourcing http://www.evontech.com/outsource-planning.html Bardi, E. J. & M. Tracey, 1991. Transportation Outsourcing: A Survey of US Practices.
International Journal of Physical Distribution & Logistics Management, 21(3), pp. 15-21.
Wallenburg, C. M., 2004. Kundenbindung in der logistik - eine empirische untersuchung zu ihren einflussfaktoren. Bern, Stuttgart, Wien.
Richardson, H.L., 1990. Explore outsourcing. Transportation & Distribution, July, pp. 17-20.
Sheffi, Y., 1990. Third party logistics: Present and future prospects. Journal of Business Logistics, 11 (2), pp.