CASE STUDIES - OUTSOURCING 3.0
Since practicality is the virtue, this book is awash with real life case studies and examples to help you relate, understand and identify the concepts used.
You may recognise the big names, the industries, the types of outsourcing contract, or identify the final outcomes of the project, whether good or bad. Here are some snippets to get the ball rolling:
Boeing And The 787 Dreamliner Project
To understand its full potential, as well as the barrage of debate surrounding outsourcing in the modern business networks, let us look at Boeing as a brief case study. Its 787 Dreamliner has been one of the most innovative and costliest projects on Earth today. From the beginning it was apparent that to keep up with Airbus and to create the next generation of airplanes, Boeing would need extensive cooperation of the best in the world.
The story of production of Boeing’s 787 Dreamliner is a poetry in motion and a true global supply chain in action.
Deepwater Horizon Oil Spill – An Outsourcing Catastrophe
On 20 April 2010, Deepwater Horizon became front page news on nearly every newspaper on Earth.
The explosion of the Deepwater Horizon rig killed 11, caused the largest oil spill in US history and entailed high-profile lawsuits, the proceedings of which will fill up a book many times the size of the one you are holding.
Chrysler’s Early Attempt At Modular Manufacturing
Modularisation appears to be very useful in the car industry. Modular units can be added or taken away with the same flexibility as a Lego game. This strategy enabled Chrysler to outperform General Motors during the 1990s.
First, modularisation reduced the unit cost and investment needed to manufacture new products rapidly. Besides, Chrysler could utilise their scarce capital to gain a competitive advantage. Soon, Ford and GM also emulated the modularisation strategy to compete successfully against “imports”.
Red Bull’s Story And The Power Of Network
There was a time in early 1980s when Red Bull’s co-creator and celebrated face - Dietrich Mateschitz - grappled with seemingly insurmountable problems within his entrepreneurial venture.
Dietrich built a network of loyal fans, drinkers, marketers, logisticians and distributors. By far the strongest network that Dietrich created was of raving fan customers. An equally strong and loyal network was created in distribution, sales and logistics areas.
This allowed the distributors to focus on the unique ingredients of Red Bull’s distribution success and be part of the action.
FoxMeyer’s Disaster Shows The Importance Of Preparation
In 1996, in the US, FoxMeyer was the second largest wholesale drug distributor with sales over $5 billion.
It all started with an ambitious attempt to revamp the company’s IT systems and distribution facilities. Because of a poor preparation, they did not understand nor configure the systems correctly.
Problems began to sprout up with the ordering and automation systems. Soon enough, there were huge sale losses, increased costs and ultimately bankruptcy and bitter lawsuits against FoxMeyer’s various technology consulting suppliers.
Procter & Gamble And Wal-Mart Show The Way
This is an example about how integration and shared information between manufacturer P&G and retailer Wal-Mart can be an effective lever that leads to the successful development of a channel partnership.
The two companies jointly developed a data highway to link all their data together, in order to reduce the costs of data warehousing and also be aware of the consumer’s needs.
Japanese Shipbuilding As A Perfect Example Of Results-Focused Outsourcing And Modularisation
Reigning for around 3 decades after WWII, Japan adopted and adapted innovative principles of both business and shipbuilding realms, thanks to great masters such as Elmer Hann, Edwards Deming and Peter Drucker.
Specifically, Japanese shipbuilders embraced Results-focused Outsourcing and Modularisation, which enabled them to achieve high productivity, economy of scale, superior quality, low weight, reduced professional fees, reduced site labour, safer construction and environmental consideration.
FREQUENTLY ASKED QUESTIONS
There are only two kinds of people on this earth. Those who are AGAINST outsourcing, and those who are FOR outsourcing. This book is meant for both of them. On a more serious note, if you intend to have nothing to do with this global phenomenon called outsourcing, then sadly this book is not for you. Otherwise, if will help you in some way, or the other.
Only if you promise to spread the good word. Actually, come to think of it, we know you will do that anyway once you read this book – so, yes please ask (email: [email protected]) and we will get it signed by the Author. If it is meant as a gift for a valued client, customer or supplier, do not forget to include their name in the request. Do not forget that if you buy from us you will get the hardcopy, full colour, premium paper VIP version of the same book that is available at bookstores worldwide.
We love to browse before we buy, and no doubt, you do too. A lot of information is available on the book’s specialist website www.outsourcing3.com. Some additional information is also available on Amazon where general public buys this book in soft-copy format. If you are a serious reader, and want to read the first 3 chapters for free before making a decision, please send us an email on [email protected] and we will send these to you via an email.
The central message of this book is very simple, yet profound. All the complexity is in implementation, which is what most of this book is about. Here is some food for thought:
- Why do companies outsource?
Because, Outsourcing provides leverage.
- What does that mean?
It allows you to do things you could not do yourself, and it allows you to do them faster, better and at a lower cost.
Like all leverage, outsourcing is a double-edged sword too. On one hand, it allows you to do more, faster. On the other hand, if it goes bad, it can easily kill your business. If you do not believe that is possible – you can look into the Fox Meyer saga from the 90s and see for yourself.
The trend of outsourcing continues to grow unabated with the whole gamut of services, from simple to mission-critical tasks. There is not a single company on earth that does not outsource anything. It is not just about cost arbitrage, it is also a finer expression of division of labour at the organisational level.
- What are the key criteria that help you decide when to outsource and when not to outsource?
In this book, you will learn to recognize how ubiquitous outsourcing is the modern day organization and life, and how to keep your eyes open to recognize situations that are amenable to outsourcing. The full list of all outsourceable activities within a company may include an element of surprise.
You will also learn why you must NOT outsource in some circumstances because of strategic or tactical reasons.
- The big question that everyone asks is…
- How to do it well?
- That is what we address in this book
In the past, in line with the standard practice in publishing industry, when a company or person wanted to present multiple copies of books as gift to their customers or suppliers we have offerred upto 35% off on deals of more than 100 copies for conferences and events. On purchases above 3 copies we are happy to discuss discounts on an individual basis. Please send us an email on [email protected] to discuss.
Reading this book will not make you appear taller, slimmer or more attractive. Yet, it might end up making you richer and more successful. Here is what more than FIFTY successful executives said about the benefits they derived from this book. This may help you make up your mind on how it can help you.