August 14, 2010
PURPOSE/OBJECTIVE: The purpose of this executive summary is to outline the outsourcing / contracting process for Travel Magazine. This process will ultimately be used to determine which business processes at Travel Magazine will be outsourced and which will remain in-house. In addition, this summary will include various vendor selection considerations, such as evaluation criteria and performance measurements, for those processes that will be outsourced.
GENERAL OUTSOURCING INFORMATION: The following is some general information regarding the outsourcing of business processes: * Outsourcing promises valuable opportunities, but may also pose substantial challenges and risks * One
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hould dramatically reduce transportation costs2) If printing is outsourced, perhaps distribution to subscribers can occur directly from printing company as thus provide further savings3) Vendors who specialize in distribution to newsstands will already have connections and thus provide quicker access of our magazine to the public | 1) It may be harder to track customer deliveries with regards to subscribers and their subsequent delivery satisfaction2) We may lose some control over where our magazine is sold, as vendors may have their own network of preferred newsstands | Printing | 1) Reduced costs associated with print shop equipment2) Reduced cost in personnel needed to operate printing services3) Takes advantage of established printing company and their specialized expertise4) Printing company may also be able to assist with distribution, especially to subscribers | 1) If magazine goes from printer directly to either the distributor or the customer, we miss the chance for catching any last minute mistakes | Layout | 1) Reduced personnel costs2) Using companies who specialize in layout should help expedite the process and thus avoid delays3) Takes advantage of vendors who have expertise in magazine layout as there are technical specs in which magazines must be submitted in order to print | 1) Takes away some of the creativity associated with design and layout of a magazine2) May result is losing some control of overall look of the magazine | Editing | 1) Reduced