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Aside from the monetary benefits that a company gains when outsourcing, it also allows a company to focus on other business issues. Other benefits to outsourcing include “better ability to plan, higher levels of operational reliability, and more rapid implementation of new strategies and initiatives” (Ferrell, 2003)
Kuiper must make a decision of whether it should manufacture in-house or outsource its ECUs and RFIDs. To meet the current demand, the best decision was to outsource its ECUs and manufacture in-house its RFIDs. By deciding to outsource, Kuiper gained the following advantages to help them meet the increased demand:
• Increased the speed of delivery time – 4 weeks lead time versus 6 weeks if manufactured in-house...
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