There are a number of benefits to Boeing derived from outsourcing. The primary benefit is that the company would be able to cut costs and save money in order to gain more profit. Instead of being the main contractor, they turned to be a subcontractor which enabled them to share development and management costs to its assorted contractors then cut down the overheads. As such, outsourcing allows the company to cut costs in several areas such as management costs, production costs, development costs, etc. In addition, outsourcing assists the company in saving time. By spreading the design of different parts to many companies, the company was able to cut down the time it takes to develop the aircraft. Furthermore, outsourcing helps to reduce the risks by pushing some of them onto the supplier. Besides that, outsourcing allows Boeing to maximize the quality of products by letting the best produce the components which they do well. This utilizes the capability of manufacturing and enhances the quality of the product.
There are a number of benefits to Boeing derived from outsourcing. The primary benefit is that the
company
would be able to
cut
costs
and save money in order to gain more profit.
Instead
of being the main contractor, they turned to be a subcontractor which enabled them to share development and management
costs
to its assorted contractors then
cut
down the overheads. As such, outsourcing
allows
the
company
to
cut
costs
in several areas such as management
costs
, production
costs
, development
costs
, etc.
In addition
, outsourcing assists the
company
in saving time. By spreading the design of
different
parts to
many
companies
, the
company
was able to
cut
down the time it takes to develop the aircraft.
Furthermore
, outsourcing
helps
to
reduce
the
risks
by pushing
some
of them onto the supplier.
Besides
that, outsourcing
allows
Boeing to maximize the quality of products by letting the best produce the components which they do well. This utilizes the capability of manufacturing and enhances the quality of the product.