Introduction
Outsourcing of the supply chain is a practice of transferring part of the decision-making process and tasks to external organizations. It is gaining popularity among businesses as it allows them to save time, reduce costs, and attract highly qualified specialists. This paper will provide an example of an organization that has benefited from outsourcing part of its supply chain, identifying the advantages gained and the changes made to the organization.
Outsourcing Supply Chain at Airbus
One such organization is the French company Airbus. This company designs, manufactures, and sells aviation equipment, as well as provides technical support services. The company decided to outsource its supply chain to enhance efficiency and accelerate production. As a result, decisions were made to transfer the production of some components and parts to external suppliers. This allowed Airbus to focus on its critical tasks and expedite project implementation (Baumann et al., 2020). The company was also able to streamline its production and sales processes, leading to increased profits.
Outsourcing the supply chain provided Airbus with the following advantages: reduced resource costs, including time and money; attracting qualified specialists to perform various tasks; increased profits through the optimization of production and sales; and accelerated project implementation time (Baumann et al., 2020). All these advantages enabled the organization to benefit, grow its profits, and provide customers with a better product or service.
Conclusion
Apparently, outsourcing the supply chain proved beneficial for the Airbus organization. It brought the business several advantages, including reduced costs, increased profits, and accelerated project implementation time. The benefits typically benefit both the organization and its customers. The company Airbus got an opportunity to optimize production and sales, which increased profits, and customers were provided with a better product or service. In general, outsourcing proved to be a valuable tool for increasing the efficiency and competitiveness of the business.
References
Baumann, O., Becker, M. C., & Horrmann, I. (2020). Ensuring adaptation while seeking efficiency: Tiered outsourcing and skip-level supplier ties in the Airbus A350 program. Organization science, 31(5), 1176-1197.