The aim of this assignment is to give an individual reflection journal about my learning experiences gained by performing assessment 1 and 2. Assessment 1 discussed the advantages and disadvantages of outsourcing business functions while assessment 2 gave a study on supply chain management (SCM) outsourcing impacts in the form of a research proposal project.
From assessment one that was based on Woolworths supply chain management (SCM), I learned that financial difficulties make companies outsource their supply chain management processes to third parties. Also, outsourcing of supply chain management processes by business people improves the handling of inventory and the flow of information between suppliers and a company (Govindan, Soleimani, and Kannan, 2015, p. 620). These experiences would help me in future in designing competitive SCM procedures to limit outsourcing costs and enhance quality delivery of products.
In the second assessment, I learned that outsourcing is a paramount activity to the success of the business. I learnt that outsourcing contributes to reduction of operational costs within a firm and helps a company utilise resources from third parties at a fair cost. However, outsourcing may be a disadvantage to the financial status of business for it leads to loss of managerial control and reduced skills to internal expertise (Vitasek and Manrodt, 2012, p. 10). From this learning, I believe it would play a significant role in my future career on how to outsource SCM before approaching it.
The learning experience gained from both assessment 1 and 2 is that the effective coordination of core business operations leads to increased benefits of outsourcing. My judgment is that outsourcing of SCM by companies helps businesses diversify distribution approaches of the company products and services with the third party providers (Tayauova, 2012, p. 190). While at Woolworths company, I observed and noted that outsourcing of SCM processes helps businesses establish an intact business contact and overcome cash infusion for a company.
This knowledge and experience were valuable to my professional aspirations. I learned the importance of understanding outsourcing aspects before approaching it in that this reduces operational expenses and ensures skills retention and efficient managerial control. Also, the experience made me understand that outsourcing firms use both downstream and upstream parties that act as distribution channels for the company and that should be utilized.
This learning experience on outsourcing of SCM by corporations has helped me in my course and academic programs in various ways, and I look forward to applying these skills in my future professional and personal life. Academically, I have learned how to conduct research using different research tools to enhance project authenticity. Professionally, I understood the right measures and processes considered by a company when outsourcing SCM to increase the benefits over the costs of the activity (Hila and Dumitrascu, 2014, p. 330). Also, doing projects helps one in gathering the right information on how to use to apply modern SCM technologies in outsourcing activities within a business. To my personal life, I have learned the importance of interacting with people from diverse cultures and professions and this strengthened by social life and perspectives.
Various events happened during the learning process. These activities included outsourcing, supply chain management, trade partnership, and resource freeing. Secondary research sources were used in gathering right information regarding these events and their significance to SCM in a company, in particular, Woolworths (Hilletofth and Hilmola, 2010, p. 50).
I read books, peer-reviewed journals, and the internet sources to collect sufficient data to understand both the advantages and disadvantages of outsourcing by a company. From the readings, I found out that consumers demand fresh finished products from a company and that the distribution of these commodities is coupled with challenges and benefits for both the company and clients. Outsourcing has the disadvantages of incompetencies from retail business employees and unpreserved quantity and quality of the commodities (Kalinzi, 2016, p. 4). Therefore, I learned that it is the responsibility of the outsourcing party to monitor delivery costs and ensure high quality of commodities is preserved.
The business research was also useful to my research learning process. My learning process on business research was full of new insights, connections, feelings, and hypothesis formulation. The market research helped me understand the relationship between outsourcing and supply chain management (Kalinzi, 2016, p. 20). I learned that the procedures of SCM and outsourcing offer a competitive edge to a firm as the third party and enhance logistics effectiveness something I never known before undertaking the research.
From the learning process, I gained knowledge on how to formulate research hypothesis. Notably, assessment 1 and two business research used both the null and alternative hypothesis in determining whether SCM relates with outsourcing. Developing hypothesis would assist me in finding out relationships between individual concepts and answer whether a viable relationship exists between the variables in both academic and professional field.
Involving logistics outsourcing into the business plays a significant role in improving the performance of SCM of a company (Brandenburg et al., 2014, p. 300). Assignment one activities included logistics outsourcing in Woolworth's retail sector and studying the relationship between outsourcing and SCM. Further, assessment one reviewed the advantages and disadvantages of outsourcing business functions to third parties. Assessment 2 activities involved the evaluation of articles related to SCM outsourcing. Further, the assignment was build upon assessment 1 to help in understanding the risks and advantages of outsourcing business operations.
The main reason for performing assignment 1 and 2 activities as highlighted above was to assist the management in describing the research problem to solve the underlying outsourcing risks (Hila and Dumitrascu, 2014, p. 330). In my opinion, assessment 1 and 2 are useful for they equipped me with the skills to compare and contrast SCM outsourcing articles and draw the right concepts and ideas of right outsourcing procedures.
The learning process has provided me with proper outsourcing and SCM principles that I have been studying in my course. The ability to execute the project aims has given me a broader business perspective from various peer reviewed journals on how the professional field of logistics work (Anon, 2015, p. 1585).
In future, the learning process has diversified my SCM outsourcing perspective for different businesses. In my professional life, I look forward to applying the rightful outsourcing measures to avoid the potential risks that affect the process such as unplanned monetary costs. It has helped me interpret the risks faced by logistics and procurement managers in the workplace, and this built by career path through the provision of the rightful resolutions. Lastly, the learning process has provided me with a clear comprehension of the SCM outsourcing procedures and principles as applied by different companies.
List of References
Anon, 2015. Multiple Objectives and Outsourcing Contracts in IT Outsourcing. International Journal of Science and Research (IJSR), 4(11), pp.1583-1587.
Brandenburg, M., Govindan, K., Sarkis, J. and Seuring, S., 2014. Quantitative models for sustainable supply chain management: Developments and directions. European Journal of Operational Research, 233(2), pp.299-312.
Govindan, K., Soleimani, H., and Kannan, D., 2015. Reverse logistics and closed-loop supply chain: A comprehensive review to explore the future. European Journal of Operational Research, 240(3), pp.603-626.
Hila, C.M., and Dumitrascu, O., 2014. Outsourcing Within A Supply Chain Management Framework. In Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE (Vol. 8, No. 1, pp. 328-336).Faculty of Management, Academy of Economic Studies, Bucharest, Romania.
Hilletofth, P. and Hilmola, O.P., 2010. Role of logistics outsourcing on supply chain strategy and management: survey findings from Northern Europe. Strategic Outsourcing: An International Journal, 3(1), pp.46-61.
Kalinzi, C., 2016. Outsourcing (Logistics) Services and Supply Chain Efficiency – A Critical Review of Outsourcing Functions. Journal of Outsourcing and Organizational Information Management, pp.1-22.
Tayauova, G., 2012. Advantages and disadvantages of outsourcing: analysis of outsourcing practices. Procedia - Social and Behavioral Sciences, 41, pp.188-195.
Vitasek, K. and Manrodt, K., 2012. Vested outsourcing: a flexible framework for collaborative outsourcing. Strategic Outsourcing: An International Journal, 5(1), pp.4-14.