You are viewing a free preview of this lesson.
Subscribe to unlock all 10 lessons in this course and every other course on LearningBro.
The final lesson in operational management brings together several themes: outsourcing (using external providers for business activities), the use of temporary and flexible labour, and producing to order. These strategies all address the fundamental operations challenge of matching the supply of goods and services to the level and pattern of customer demand.
Key Definition: Outsourcing is the practice of contracting a business function or activity to an external provider rather than performing it in-house.
Virtually any business function can be outsourced, but the most commonly outsourced activities include:
| Function | Examples of Outsourced Activities |
|---|---|
| IT | Software development, server management, cybersecurity, helpdesk support |
| Human Resources | Payroll processing, recruitment, training delivery |
| Manufacturing | Component production, assembly, packaging |
| Logistics | Warehousing, delivery, fleet management |
| Customer service | Call centres, email support, live chat |
| Finance | Bookkeeping, tax preparation, audit |
| Marketing | Advertising campaigns, social media management, market research |
| Facilities management | Cleaning, security, catering, maintenance |
Subscribe to continue reading
Get full access to this lesson and all 10 lessons in this course.