Question: A new project has been initiated by senior management to automate logistics processes in your company....

Question: A new project has been initiated by senior management to automate logistics processes in your company. A large budget has been allocated to this project because of its importance to the company's operations. You have been asked to present to senior management two reasons for software to be made by your own company and two reasons to buy ready-made solutions. What would you present?

Expert Solution

Two reasons for making software by company itself

Better understanding of need and utilities of logistics software for the company. Thereby enabling addressing of all demands of enhancing the logistics process. Employees would be in a better position to build a software suited to the company.
Helps in better maintainance and customisation of software for constant improvement. As time passes even the logistic process of the company get upgraded and the software as well should be inline the updated requirements.

Two reasons to purchase ready made solutions

Opportunity Cost - Instead of focusing on non-core activity it is better to focus on core business activity by buying a software which satisfies all requirements of logistics process. Earn better revenues by focusing on core-activity of the company.
The suppliers of software who have vast experience in the field would provide effecient software that enhances the logistic process at a reasonable cost. [ Should be less than cost of internally generated software ]

ekkarill92 answered 1 year ago

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