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Submitted By chancerichardson
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Firebird Electric U.S (Case Study 12)

1. Based on the data presented in this particular case I would recommend that Firebird make products based on the following rationale. First, the case suggests that outside vendors cannot match the responsiveness and service levels offered by and in-house function, largely because the outsider is not subject to the same management direction and control as employees. Secondly, there are concerns with outsourcing as it relates to confidentiality of data, strategic applications and provisions for disaster recovery. Finally, the cost savings from producing products in house can sometimes be non-transparent. Non-transparent as in many times when products are outsourced vendors try the strong hold technique which causes the prime on the contract to waste money and time. These are some of the major reasons why Firebird should consider producing in-house.

2. The benefits possibly of outsourcing is that you get vendors that have specialists that are well trained and up to date on the latest and greatest technology. Next, downsizing staff and locations can assist it overall cost savings. Also, outsourcing creates much tighter control of fringe benefits and run much leaner overhead structures. Finally, allow Firebird to concentrate on their core competencies.

3. The following steps should be considered if planning to outsource the part or product.

1. Description of Need- Firebird must first write a clearly defined set of specifications. 2. Identification and Analysis of Possible Sources of Supply- The specifications would then be packaged and a Request for Proposal would be generated and released to perspective suppliers. 3. Supplier Selection-The step includes extensive evaluations of the Request for Proposal and plant visits to two or more perspective suppliers. 4. Determination of terms-In this step, Firebird

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