Outsourcing: guidelines for a structured approach

Outsourcing is a management approach by which an organization delegates some noncore functions to specialized and ef®cient service providers. In the era of ªglobal marketº and ªe-economyº, outsourcing is one of the main pillars of the new way to conceive the relationships among companies. Despite outsourcing large diffusion, huge business cases and big deals of documentation available on network or press, there is no structured procedure able to support the govern of the evolution of a generic outsourcing process. In accordance with the principles of total quality management, this paper describes a proposal of a new approach for managing outsourcing processes. The model, which can be easily adapted to different application ®elds, has been conceived with the main aim of managing strategic decisions, economic factors and human resources. The approach is supported by different decision and analysis tools, such as benchmarking techniques, multiple criteria decision aiding (MCDA) methods, cost analysis, and other process-planning methodologies. An application of the method to a real case is also provide

Outsourcing the logistics function: the supply chain role of third-party logistics service providers in UK convenience retailing

Logistics, defined as the process of strategically managing the procurement, movement and storage of materials; parts; finished inventory and related information flow through the organisation and its marketing channels, is increasingly being recognised as a vital part of an organisation’s marketing strategy. In many organisations, the logistics function is currently facing significant challenges. Pressures from increasing competition and high customer service-level expectations have created a need for more professional and better-equipped logistics services. Confronted with such competitive pressures, these organisations are faced with decisions of the make OR buy kind with regard to the logistics processes of supply and distribution. In addition, the emergence of a need to focus on core capabilities has led many organisations to contract out all, or part of, the logistics function to third-party providers. This paper explores the challenges of outsourcing logistics in the UK convenience-retailing sector

Outsourcing information systems: Drawing lessons from a banking case study

Financial and costs benefits are often put forward as the reasons why organisations decide to outsource. Emerging patterns and trends indicate that today’s outsourcing decisions are often motivated by factors other than cost. Thus, the decision-making process is more complex than it may at first appear. This paper presents findings from a case study from an organisation in the UK banking sector that was motivated to outsource aspects of its information technology/information system (IT/IS). The underlying motives and decision-making process that influenced the bank outsource its IT/IS are presented and discussed. Findings from the case study suggest political perspectives, as well as human and organisational issues influenced the bank’s strategic decision-making to outsource certain aspects of its business. An examination of the case study findings suggests that cost alone is not always responsible for decisions to outsource, as it was found the bank’s outsourcing decision was driven by a series of complex, interrelated motives in a bid to reduce the risks and uncertainties of managing its own technology. Considering the complex nature of the outsourcing process a frame of reference that can be used to assist managers with their decision to outsource IT/IS is propagated. The case study is used to present an organisation’s experiences as to how and why it decided to outsource its IS and thus offers a learning opportunity for other organisations facing similar difficulties. In addition, the case study findings highlight the need to focus greater attention on discriminating between the short and long-term consequences of IT/IS decision-makin

The Role of Maintenance and Facility Management in Logistics: A Literature Review

Purpose - The purpose of this paper is to provide a literature review on the different ways of carrying out Facility Management and related topics in order to uncover that there is limited research regarding the impact of Facility Management on the logistics and operational performance of warehouses. Design/methodology/approach - Four different focus areas have been identified and for each one different methodologies and streams of research have been studied. Findings - The study underlines the importance of Facility Management for the logistics operations; therefore it supports the notion that investments aiming at preserving the status of the building and service components of warehouses are crucial. Originality/value - This paper aims to suggest to Facility Management managers that they can contribute to enhance business performance by designing effective Facility Management strategie

Logistics outsourcing and 3PL selection: A Case study in an automotive supply chain

Outsourcing logistics functions to third-party logistics (3PL) providers has been a source of competitive advantage for most companies. Companies cite greater flexibility, operational efficiency, improved customer service levels, and a better focus on their core businesses as part of the advantages of engaging the services of 3PL providers. There are few complete and structured methodologies for selecting a 3PL provider. This paper discusses how one such methodology, namely the Analytic Hierarchy Process (AHP), is used in an automotive supply chain for export parts to redesign the logistics operations and to select a global logistics service provider

Sukuk dan wakaf bagi majukan Kampong Bharu

Sejak berkurun lamanya, filantrofi telah memainkan peranan penting dalam menyumbang kepada meningkatkan kebajikan seluruh manusia di muka bumi ini. Dalam konteks ini, wakaf merupakan penyelamat yang mampu menyediakan pelbagai kemudahan untuk rakyat yang memerlukan. Wakaf dapat menjadi sebagai benteng yang kukuh menyelamatkan umat daripada hakisan sosial dan juga ekonomi. Apabila dana wakaf dikumpul dan digunakan dengan sebaik-baiknya, berbagai bentuk pembangunan ekonomi boleh dilakukan dengan menggunakan pendanaan melalui wakaf

FM contract relationships: from mobilisation to sustainable partnership

Purpose / theory Outsourcing is a fundamental business model for the Facilities Management (FM) industry. To enable sustained mutual success the parties involved must seek to understand the unique, socially constructed, and often highly complex situational realities of the organisational ecologies they are engaged in. The FM industry can unlock improved performance and strategic credibility through an appreciation of the need for different conversations. Design / methodology / approach Findings from two recent cases are considered. Data from two different client-contractor relationship situations was collected utilising a critical ethnographic research methodology; a phenomenological paradigm that acknowledges knowledge as socially constructed through language. A variant on Scott-Morgan‟s unwritten-rules coding method was used to analyse the data and justify the prevalent themes and issues presented. Findings Findings include the role of perceptions and assertions in the construction of social realities, change management implications, and how these impact on the traditional view of the client/contractor relationship. Ethnographic findings are typically context specific, therefore generalisations must be carefully considered. The key findings are however substantiated by existing FM outsourcing literature. Originality / value Highlights the practical importance of seeking to understand socially embedded realities for improved FM contract performance. Considers the human resource element of change via FM outsourcing. Takes a social constructivist approach to organisational sense-making. Uses examples from focused, critical ethnographies to explore existing FM contracting dynamics. Qualitative investigations into related organisational circumstances are encouraged to further develop an evidence base