Question

1. What are the main differences between having a vendor’s employees working in your manufacturing operation and you hiring your own employees to do the same work?

Answer 1

The main differences between having a vendor's employees working in your manufacturing operation and you're hiring your own employees to do the same work are : -

1. We can increase our production as we can use our employee to work for 7 hours excluding the time for Lunch but we can't force Vendor's employee to work like the sameway.
2. The profit earned during the work performed which was getting earlier by the vendor will be saved by the organisation as now we have to pay only the monthly salary to our employee not the profit.
3. If the same work performed by vendors employee and there occurs some mistake during the performance of the product. Then we can debit the difference amount in vendor's bill but we can't debit the same amount for employees salary who is performing the same job in our organisation as an employee of the same organisation.
4. We can force vendors to hire more skilled employees in their team who can perform the same jobin a better way , on the other hand we have to train our employee to increase their performance.
5. If the work is not done properly, then the vendor will do the same work again Until and unless it is done properly and it will be paid only for the corrected work, but on the other hand If the same work is not done properly by our employee even though we have to pay him monthly salary .