TAILIEUCHUNG - Lecture Logistics theory - Lecture 15: Outsourcing

Lecturte Logistics management - Chapter 15 provides knowledge of outsourcing. At the end of this lecture, students should be able to define outsourcing, understand the advantages and disadvantages of outsourcing, understand the 3PL, 4PL. | Outsourcing At the end of this lecture, students should be able to Define outsourcing Understand the advantages and disadvantages of outsourcing Understand the 3PL, 4PL Learning Outcomes What is Outsourcing? Outsourcing is contracting with another company or person to do a particular function OR Outsourcing is the contracting out of a business process, usually non-core functions (which an organization may have previously performed internally or has a new need for) to an independent organization from which the process is purchased back as a service. Implicit in Definitions The definitions of outsourcing include both domestic and foreign contracting, termed insourcing and offshoring. Other terms have also been developed including: Nearsourcing – the transfer of business or IT processes to companies in a nearby country, often sharing a border with your own country. Crowdsourcing – a process that involves outsourcing tasks to a distributed group of people. Why do businesses outsource? .

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