In almost every industry, business owners are considering ways to outsource some business functions. Others are looking at bringing everything in-house. It’s not a one-size-fits-all proposition. How do you decide?
Home Depot, for example, has taken a big step toward moving its entire supply chain in-house. The building-supplies giant recently opened an 800,000 square foot distribution center in Dallas, Texas, with the goal of being able to provide same day/next day delivery to 90% of the U.S. This new distribution center gives Home Depot “the opportunity to own its entire supply chain,” according to SVP of supply chain Stephanie Smith.
Outsourcing has its own set of benefits, however, and the risks and rewards have to be evaluated for each unique situation, according to Micah Pratt, writing in Business.org. The upside of outsourcing includes:
- Expertise without the learning curve– Business functions from accounting to document digitization, inventory systems, and facilities management all require a fair amount of expertise to establish and maintain. Outsourcing provides immediate access to expert professional services without the delays of the in-house learning curve.
- Focus on core business– When you outsource some functions, you can turn your attention to the important tasks of sales growth, customer retention, and innovation.
- Lower-cost growth– Outsourcing to a professional-services provider allows businesses to grow without all of the capital costs and operating expenses associated with expanding those functions in-house.
Outsourcing is almost always a cost saver. Some business owners and managers worry, though, that they will lose control of essential information or product quality.
If reduced oversight and control is a concern, look for a single vendor who can provide more than one outsourced function. A vendor who provides storage products, professional services, and inventory systems, for example, will be easier to monitor than three different vendors for these three different functions. Start off with a single project, and as a vendor proves to be trustworthy, add more functions to the vendor’s outsourcing contract.
A careful cost-benefit analysis yields useful insights into the relative value of outsourced vs. in-house, and accounting expert Kenneth Boyd offers a template to help weigh the pros and cons. As businesses everywhere face downward pressure on costs, now is the time to evaluate whether some business functions should be in-house, and others can be beneficially outsourced.
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Organizational apps have proliferated right along with apps of every other kind. If your business has started converting paper documents to digital documents, you can use a digital asset management (DAM) collaboration app to give your remote teams anywhere-anytime access to the documents they need. But if you still rely on paper documents alone, your remote workers are going to struggle to stay productive.
Remote work has grown over 91% in the past 10 years. Some companies have even gone entirely virtual. The staff of business-finance services company Guidant Financial, for example, works wherever they have a good internet connection. Guidant assists small-business owners with financing options, including retirement account franchise purchases, ROBS, and SBA loans. Business financing generates large volumes of loan and compliance documents for the SBA, the SEC, and the IRS.
Guidant uses a custom portal and app to electronically manage documents, including those which originate on paper.With all their clients’ documents accessible to Guidant’s finance teams, in servers that act as secure virtual “file cabinets,” Guidant’s staff can collaborate to complete and file all the documents their clients need for compliance or loan applications.
Employee satisfaction and retention are big benefits of Guidant’s virtual operations. An even bigger benefit is the company’s ultra-low real estate budget.With few documents to store, and most staffers working remotely, Guidant’s office space is far smaller than the average financial-services company.
Companies like Guidant commission custom software, but for many businesses, an off-the-shelf app provides all the digital asset management functionality their organizations need. Tadesite.com reviews 10 of the top rated off-the-shelf DAM apps with cataloging and search capabilities; some even have a search-within-document feature that is especially useful for collaborative teams.
But to get the best from your remote teams, you have to provide them with digital documents. And that requires converting your paper documents to digital format via a comprehensive digitization program. Digitization is a good bit more complex than simply scanning to a PDF. Properly executed, digitization creates “smart documents” that a DAM app can store, organize, and deliver to your remote workers with electronic speed. Paper documents are easily damaged, lost, or destroyed, but digitization adds a layer of security that controls accessibility and monitors usage.
Talk to an digitization expert and get your business ready for the latest productivity apps.
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