Question

In: Operations Management

If you were going to start an e-business what types of activities would you outsource (outside...

If you were going to start an e-business what types of activities would you outsource (outside of the company, not necessarily outside of the country)? Be sure to explain your reasoning.

Solutions

Expert Solution

E commerce business majorly comrosiesbof creating a market place for sellers and buyers. The core competencies should be technology . The type of activities which can be outsourced can be in the following areas.

  • Warehouse or fulfilment center management : It is a human centric process and requires lot of capabilities and space for running the business. There are so many 3 PL players in the market who can manage the warehouse business with required efficiencies.
  • Distribution of goods: logistics network should be strong inorder to fulfil the requirements on the stipulated timeline. Thus it has to be done through capable players in the market and it can reduce the overall cost of distribution
  • Human resource: strategies human resources decision can be taken from senior management with the help of external consultants.Hiring, training and development etc can be completely outsourced.
  • Campaign management: innovative ideas comes from creative thinkers. This campaigns can be organised with group of people or organisation who are good at it.
  • Online customer support : this might requires 24*7 service to address customer queries. It can be oitsoudout to a good BPO organisation who has the business knowledge and trained staffs.

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