Question

In: Operations Management

When an organization has decided that they want someone else to provide goods or services, they...

When an organization has decided that they want someone else to provide goods or services, they will outsource to another organization. The organization/party that is purchasing the goods or services is known as the?

Solutions

Expert Solution

When there is irregular and low quality of goods or service are supplied by the supplier, then organisation will think of changing the supplier therefore company may outsource to another organization.

If there is any irregularities and low quality supplying of products will directly affect the company business. Because irregularities and low quality products will fail to meet the customer demand and satisfaction therefore company may incurr loss by losing its customer. Therefore in such situations, organization want someone else to supply the goods or services to retain thier business. Hence they will outsource goods or service through another suppliers/companies.

The organization/party that is purchasing the goods or services is known as the Buyers.

Buyers are the people who purchase the products or services from the sellers.

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