Outsourcing From the Perspective of a Multinational Firm - Essay Example

T & T (pronounced TNT) has two hundred retail stores across twenty five countries spanning four continents, making us one of the leading apparel companies’ worldwide. To do so, we have streamlined many processes to maximize our output without compromising on the quality expected of our brand. To be able to do this, many of our processes have been outsourced to various companies which specialize in these processes. Manufacturing has been outsourced to sectors where the cost to manufacture is lower as compared to that of manufacturing at home.

This cost saving has been passed on to the customer who has benefited by the fact that even though the costs of raw materials is on the rise, the price of our goods haven’t gone north and the quality of the goods we provide has remained the same over the years and even improved in many cases. Something that the customers have really appreciated and have been complimenting us on time and again. Also with outsourcing, we have been able to reduce the time it takes to bring out new products into the market.

With people working in different time zones, it is now possible to bring out new products at a faster rate than before. Now our designers can create a design which is sent to the manufacturers who can produce the goods and it can be ready and shipped back to all our stores within weeks. This has meant that whenever a customer purchases a T&T product they are always buying the latest in fashion. Most of our back office operations have been outsourced freeing up valuable resources which would otherwise have been bogged down due to such tasks.

This has brought in a huge cost saving to the company as well allowing us on to divert our resources and concentrate on many other avenues which would have otherwise would have suffered.