The Concept Of Offshoring and Outsourcing
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Critical Thinking
In today’s highly competitive, extremely variable and dynamic environment, many firms are seeking solutions. Supply chain management becomes more sophisticated and the difference between what firms want to achieve and what they can do in-house continues to grow, firms begin to realize that doing the right thing becomes more interesting than doing everything. Accordingly, they becoming better focused and more specialized by outsourcing and offshoring activities that are far from their core businesses. In many cases, firms decide to outsource this function in whole or in part to agents or third party logistics firms.
Using this concept of offshoring and outsourcing answer the following questions by conceding any Saudi Local company or any Multinational company.
Questions
What are the roles of Third party logistics firms in a smooth running of Supply chain process of a multinational organization? (1.5 Mark)
What are the motivational factors companies going internationally? (1.5 Mark)
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