Benefits and Risks of Outsourcing the Global Supply Chain
Globalization has created many opportunities for organizations. There are many advantages and ways to create value through outsourcing portions of one’s global supply chain. For each opportunity, there are also many ways for the project to run into problems.
In your initial post, address the following:
- Identify one example of an organization that created value for itself through outsourcing part of its supply chain. Provide a link to one resource.
- Identify the benefit that occurred.
- How did this benefit help the organization create value? Who was the value created for—the organization, or the customer?
In your replies to at least two peers, discuss potential risks of outsourcing for the examples they provided—for example, risks to supplier quality or stability, intellectual property, or reputation. The following questions may help develop your responses:
- Can you provide an example of an organization that started outsourcing the supply chain and then stopped? What risks did the organization face that caused them to stop the project?
- Can you provide an example of an organization that outsourced similarly and faced reputational damage due to the project?