Question

Give some examples of where offshoring has caused quality and delivery problems.

Answer 1

The business of a nation faces a lot of market competition from its internal competitors in the market apart from the international ones. This makes the business to offshore some of its activities. Hence offshoring for a business of say US sized economy would find it efficient to use the Mexican manpower for the sticking of the readymade cloths that is been sold. Similarly, the sportswear brand like Nike has outsourced its production in various South East Nation for the cost benefits at home. However, the quality and delivery problems are there. For example, the Steel manufacturing of Australia is been outsources to China who takes the needed ore and coal from the nation and processes it and ships it back to Australia. This is such an issue that needs to be seen very deep within. If the Chinese stop selling steel to Australia the supply chain would break as well as the price of the product. The Quality of the Outsources fashion wears in Bangladesh by few American pieces of Denim designer and producer for the cost advantage. However, with the disruption of offshore production, the business makes it difficult for the demand and supply of the product. Since the off sourcing was based on one supplier if taken no precaution of risk assessment of the machinery failure occurs is not taken into consideration. The difference of quality is seen which may make the consumers lost the brand following to make them lose business. This happened to the Brand of ‘Lee’ and got very irregular quality control due to the quality delivery problem.