Connect with us

NEWS

Proposal of an outsourcing model for purchasing activities

Avatar

Published

on

Proposal of an outsourcing model for purchasing activities

International competition, constant innovation, and increased price pressures make companies look for new ways to increase profitability and competitiveness. These strong limitations help outsourcing to be a strategy. At the forefront in the United States and later in Europe not only But will reduce costs But also to create value by focusing on the company’s resources in important business activities While outsourcing of additional activities (Such as cooking, cleaning, safety, etc.) is a classic. Those involved in tasks such as IT, telecommunications, finance, transportation and procurement are new and expanding faster.

Previously it was used as a simple tool to reduce costs with financial and short-term vision. Outsourcing is a management tool that exists for managers today. If used correctly, this can lead to drastic changes in business processes, costs, and culture. On the other hand, if the device is not part of the true strategy reflection, it will not be able to operate in a planned and consistent manner, unless it is a matter of clear communication and intelligence, and if not specifically supported will Bad effect

In reviewing literature, we propose in the first part to present the characteristics and risks of employment . In the second part, we cover specific areas: employment, procurement, activities. From simple assignments to strategic procurement and / or purchasing processes that have the least added value, we will examine a variety of outsourcing formats such as strategic outsourcing and outsourcing operations.  The third part presents the results of a qualitative study from 6 case studies. All observations lead us to propose a survey Offshore outsourcing models of However this procurement .

1 – Outsourcing: definitions and risks

The word outsourcing has many definitions. The word outsourcing in English is the latest version. It was first used by the American Computer Press in the late eighties to describe the new trend of large companies moving IT services to external service providers. It also makes different French translations depending on the context: outsourcing options, outsourcing

Sometimes the term outsourcing is used. This is a new doctrine created by P.Y Barrere (1988) in the 1970s in order to have a wide range of features to call collaboration among suppliers, customers. This author has demonstrated the importance of long-term partnership and trusting relationships as compared to maximizing short-term personal interests.

7 Graver (1999) provides a more accurate definition: the transfer and outsourcing of internal business activities that are duplicates of the business are the power to make decisions relating to external service providers under the terms specified in the contract. In practice, activities are often transferred only But there are still factors of production, including resources that lead to repeated activity awareness: personnel, equipment installation, technology … and decision-making rights, which is the responsibility to make decisions about the transferred activities. This definition illustrates the complexity of the phenomena and risks inherent in the transfer of personnel and decision-making power. But didn’t say anything about the outsourcing company Broward and Morgan (2007) fulfilled the requirements with the following qualifications:

  • Use and use of third-party resources, assets, and skills
  • Measurement standards, requirements and value / cost ratio ratios of guaranteed quality and flexibility
  • The purpose of the service is provided within the organization.
  • By transferring existing employees to service providers;
  • And / or changes or restores business processes and technology that are the basis of the business

2 – Context of outsourcing purchase

This section addresses procurement, challenges, limitations, and implementation contexts. The outsourcing purchase involves outsourcing all or part of the company’s procurement activities to a specialist service provider (Salz, 1989). This method is especially good for non-product purchases. (Telecommunication, transportation and logistics, marketing and investment communication, MRO, etc.) that are not suitable for the main business

Manufacturing purchases account for approximately 20% of all purchases, and sometimes 80% of the total number of suppliers. The lack of connectivity from diversity and production means they are often overlooked and therefore are a source of significant potential benefits.

The outsourcing of the purchase is mainly related to non-manufacturing purchases that are difficult to collect internally. In general, the purchase of “Class C” (low-cost and non-recurring strategic purchases) creates significant administrative expenses. Outsourcing does not involve partial and complete purchase functions. The purpose in this case is to reduce operating costs, get profit from the purchase. But gives buyers free time so they can focus on the buying process or value-added activities. Outsourcing also helps reduce the number of relevant strategic service providers

3 – Awareness of quality education

3.1 – Methods

interviews (face-to-face) were conducted in 2007 with all or part of experienced buyers / directors in order to perform theoretical analysis of outsourcing buying and to identify key concepts identified with ground-based reality. From suppliers that specialize in outsourcing of purchases, including hiring to buy Class C

These interviews provide an opportunity to highlight and understand the underlying motivation for purchasing decisions, analyze the systems implemented within the project framework, and identify the factors that contribute to operational failure or success.

This empirical study is based on qualitative methods in areas that are not intended to provide a comprehensive view of the practice in terms of outsourcing, not the model used. But helps us to focus on important points.

NEWS

Companies that are thriving during COVID-19

Umar Nisar

Published

on

Companies that are thriving during COVID-19

After almost a year of the devastating pandemic that paused the world and got it into lockdown mode, companies are working hard into finding new ways of staying afloat, by adapting their services to operate with the necessary measures to stop COVID-19 spread or to opening new roads for different ways of making businesses that allow them to adapt and overcome the pandemic, according to Francisco D’Agostino.

All the industries at a worldwide level suffered consequences due to the pandemic and some managed to thrive in these trying times. These companies that managed to succeed are the new examples to follow in the look for success for new entrepreneurs.

One of the companies with a higher growth during the pandemic was the popular “Zoom”. During the pandemic year, this company increased 413% in the market value and became one of the most used apps for video conferencing at the same time that everything started to change to a remote option.

Schools, jobs and many other industries started applying remote structures to keep activities running and, in the cases that this was an option, it has been said that remote working has brought more productivity and positive results for companies around the world.

With this picture, then Zoom became a synonym for communication.

Another company that has been extremely profitable during the pandemic is “CrowdStrike”. They started recently, in 2019, and became the big thing because of the same reason above. As companies start applying remote jobs, then the need for security increases and the cyber security companies started thriving more by the day.

CrowdStrike increased 357% its market value and gathered more popularity when some hackers tried to compromise the company in an unsuccessful attack. However, their rival was compromised, and this gave them a huge boost among people.

There are hundreds of companies that thrive during the pandemic and we could continue talking about those as a way to inspire young entrepreneurs. However, what matters from this is the way these companies find their way up in a complicated situation.

All online services improved because COVID-19 shows us a lot, but one of the things that taught us is that online services are vital to keep the world going in a situation that no one imagined it could happen.

Now, an important part to notice is how investments increased for people of all ages. It is a trend to avoid having money in the bank without producing anything because of multiple reasons, but one of those is inflation.

So as a way to protect from inflation, people started investing their money and creating and interesting move, since we are talking about young people joining a trend that wasn’t really of interest years back.

One of the industries that thrived the most during the pandemic was videogames. Now with this industry there is a peculiar case that is worth talking about… the GameStop case.

Let’s talk more about this case.

GameStop Corp is a company founded in 1984 in Dallas, Texas. Now, this company has been famously known as your place to go to buy games, but the recent change into online gaming made the company start experiencing difficult times.

The stocks of this company had been struggling for a long time. GameStop has been losing money for years as sales of video games increasingly go online, and its stock fell for six straight years before rebounding in 2020.

But… what really happened in 2020?

Well, the situation was that there were a lot of investors that put their money into believing that stocks options were going to decrease, as the trend showed on earlier years.

However, a bunch of small investors from Reddit didn’t agreed and they decided to change the trend. They started exhorting each other online to keep GameStop’s stock rolling higher. The wild discussions are full of sarcasm, self-deprecation and emojis of rocket ships signifying belief that GameStop’s stock will fly to the moon.  

To illustrate more about the trend, this company was worth $1.3 billion on the stock market on New Year’s Eve was worth about $21 billion at the end of last week, roughly the same as Kellogg’s, the cereal maker, which, unlike GameStop, is solidly profitable.

After millions in losses, the situation is raising some concern that investors are taking excessive risks, but it also shows how trends can shift completely by the day.

If GameStop will maintain this trend is yet to be seen, since this company has had losses for several years.

The COVID-19 pandemic made the whole world face a new reality, nor in the worst scenarios was it expected to experience such a large commercial and operational stoppage. However, countries like New Zealand, Australia and Chile in the industrial sector managed to adjust and establish business operations in order to guarantee timely supply and also under the corresponding health protocols.

Therefore, it is extremely important to break with management paradigms and myths. These planning processes are based on studies and analysis of scenarios in the short, medium and long term in their traditional scheme. This is by applying the best practices created Strategic Business Management (GENE), to support and accompany the business sector to find paths and get out of the adversity.

Management is of vital importance as it allows planning, organizing, directing and controlling each of the processes and activities that take place within the company, explained Francisco D’Agostino.

Currently, the markets generate greater demands and demands, therefore it is important that companies have hierarchical levels that allow them to direct all their activities to the fulfillment of the objectives, this would not be possible if there were not a level where their work exclusively It corresponds to the decision-making process, the definition of the guidelines that must be followed to achieve the established objectives, and above all the responsibility they assume by belonging to that level.

The success or failure of the business totally depends on this level, the ability it has to direct a certain group of people and thus achieve the fulfillment of the objectives as a whole and not individually is the reason why the existence of a Management is of vital importance as it allows planning, organizing, directing and controlling each of the processes and activities that take place within the company.

Continue Reading

NEWS

The Ultimate Benefits of Using Personalized Bricks

Umar Nisar

Published

on

The Ultimate Benefits of Using Personalized Bricks

Brick fundraising is considered an effective and convenient way to raise money in any social club or school, college, church, etc. This is one of the most popular fundraising strategies for low- to mid-level fundraising. But in the last ten years, this strategy has gone out of priority. Now, this strategy is starting to take place again.

This strategy is best suited for low-level donors. Engraved bricks are bricks collected from followers or sponsors for good work. Engraved bricks are most effective for a brick fundraising campaign. If you are looking for a new way to raise money for a charity, personalized bricks may not be your first choice. But they are becoming increasingly popular for a variety of fundraising projects as these are easy to organize and personalized bricks have many advantages.

Do you have any idea about the benefits of using personalized bricks? If so, you’ve come to the right place. We will now try to highlight some of the significant benefits of using personalized bricks in our article. So let’s get started.

Benefits of Using Personalized Bricks

Use them indoors or outdoors

You can display personalized bricks inside or outside the sidewalk or interior or exterior wall. These can be used for new projects, extensions, or building renovations and prove to be very popular due to their instant appeal. Any wall can be used to add brick slips and you can create your theme as part of the project then give it a name that is relevant due to the question.

A unique way to attract donors

This can be a bit awkward when you ask sponsors for grants for a fundraising project, so take a look at the wharf and introduce people to the idea of ​​carved bricks. Not only is it a little different when it comes to making the process fun, but it’s also a fancy way to raise awareness about a suitable cause. Arrange a charitable fund using engraved bricks and sponsors have a way to show where their donations have gone.

The right way to reward sponsors

Personalized bricks are somewhat different and this makes them unique from the point of view of charitable fundraising. Instead of asking sponsors for cash donations, not to show anything for their kind contributions, they will have their own carved bricks that clearly show their support for the project in question. Carved slip bricks look great as part of any building and they leave a lasting mark on the community.

A proven method for generating funds

Carved bricks are very reasonably priced, but you can sell them to your liking and increase the gross amount for the reason you choose. Typically, engraved bricks sell for up to 50 anywhere, but how much you want to charge for each brick is up to you, so test the water and see how generous your sponsor is! This kind of initiative is becoming increasingly popular and it is a sure-fire way of raising much-needed funds.

Ideal for any organization

Fundraising involving engraved bricks is perfect for many tasks, so whether you want to raise cash for a new village hall, a school expansion, or your local charity, you can order bricks in any color or style, personalize them and Make sure they are in line with your new building theme. The carved brick will last as long as it lasts and it will leave a lasting legacy for the sponsors who were kind enough to donate to your worthy cause.

Final Thought

Most people use engraved bricks for brick fundraising but there are many benefits to using personalized bricks that not many people know. Consider conducting personalized brick fundraising campaigns and they come with a wide range of benefits, not just a great way to help you achieve your financial goals.

With this in mind, we have tried to discuss in this article the various benefits of using personalized bricks. Hopefully, this small effort of ours will give you a full idea of ​​its benefits. If you are interested to know more about it, you can comment on us. We will surely try to answer.  Thank you all.

Continue Reading

NEWS

Term Insurance Policy: Advantages and Disadvantages

Bobby Jansson

Published

on

Term Insurance Policy: Advantages and Disadvantages

With the rise of economic fluctuations and detrimental illnesses, insurance policies have become a precautionary shield for the public. People have become intuitive about future income, smart investment plans, and secured monetary returns to income. Term insurance is one segment under the roof of insurance policies. There has been continuous swelling of life insurance policies in difficult times. It is very requisite to choose and buy term plan that meets your requirements.

Term insurance gives the benefits of long-term savings, death benefits, and secured income for a family. In the tech-savvy world, buying a policy is just a few clicks away. One may opt to buy term plan online comparing the plans on various portals.

Advantages of Term Plans

  • Flexibility

One may buy a term insurance plan with good flexibility. It is both renewable and convertible. You may extend or renew the policy without any medical examination after the termination of the first policy. With a hike in the premium, the term policy can easily be converted into an endowment policy of the same sum assured. It is also effortless to opt-out of the policy. Once you stop paying the premium, your coverage will be ceased, thereby ending the policy. There is no pay-out or financial loss like an endowment plan where one cannot recoup the savings without financial deductions.

  • Cost-Effective

Long term insurance has an economical price. As compared to other life insurance policies, they are far more cost-effective. Buy term insurance and avail the benefit of huge life coverage to paying budget-friendly premiums. The premium for a term insurance policy is almost six times lesser than any other life insurance policy. Moreover, the premiums are locked in the duration of the plan. The total premium paid when you buy a term plan young is lower than what you purchase later in life.

  • Tax benefits

Section 80C of the Income Tax Act gives beneficial tax saving options. It offers deductions of up to INR 1.5lakhs for listed investments. Under this section, the premium paid is also entitled to deductions. However, the yearly premium should not exceed 10% of the coverage amount.

Under Section 80 D of the Income Tax Act, the policyholder who has taken health-related rider can avail tax benefit. With the term insurance policy, one can avail deductions of up to INR 25000.

Under Section 10(10D), the assured sum received on maturity or death of a policyholder is completely exempted from taxes.

Disadvantages of Term Policy

  • Term insurance is not a policy for those who aspire to save for future needs like marriages, education, retirement, or others.
  • A term Insurance plan does not enable you to create wealth. They have no profit plans and hedges against inflation.
  • If the insured outlives the policy period, no monetary benefit would be given. The policy builds no cash value.
  • No surrender values or loans are given in term insurance policy.

The Bottom Line

Term plans are the purest and most cost-efficient type of plans. It is quite convenient to buy term insurance online as well. Therefore, you should wisely choose the plan considering your income, liabilities expenses, etc.

Continue Reading

Trending

%d bloggers like this: