Location Flashcards
What are some fsctors affecting location
Good transport links
Distance to suppliers
Proximity to market
Land value
Distance to customers
What does logistics cover in business
Transportation
Stock control and storage
Stock procurement
What is offshoring
Offshoring is relocating business processes or operations to a different country
Often to take advantage of lower wages or specialised skills
What are some advantages of offshoring
Lower labour costs
Reduced operational costs - living and infrastructure
Special expertise- textiles in India
Round the clock operation - take advantage of time zones to provide 24/7 customer support
What are some disadvantages of offshoring
Language differences- lead to delays or misunderstandings
Reputations damage
Loss of control - decreased quality
Loss of jobs in home country
What does reshoring mean
Reshoring- transferring a business’ operations back to their original home country
What are some advantages of reshoring
Improved quality control
Better control over supply chain- better meet deadline and avoid contract law issues
Creates jobs for home country
Quick Lee delivery
Lower carbon footprint
What are some disadvantages of reshoring
Higher labour costs
Short term disruption of supply chain
High initial cost of investment into infrastructure and training workforce
What does outsourcing mean
Outsourcing- the practice of hiring a party outside a company to perform services or create goods
What are some advantages of outsourcing
1.Reduced overhead - training , managing employees
2.Increased flexibility- adapt to demand and customer needs
3.Access to more advance tech - technology is expensive , with outsourcing you don’t pay for it
What are some disadvantages if outsourcing
Loss of control
Dependence on external providers- disruptions in supply chain
Long term dependence- reduced flexibility
