Dimensions & Activities that affect Offshoring

The list of dimensions that impact the offshoring concept


Performance dimension  Order communication
Activity Impacting Performance  Order Placement
Impact of off sourcing More difficult communication

 Performance dimension: Supply chain visibility
Activity impacting Perform: Scheduling and expedite
 Impact on Offshoring: Poorer visibility

 Performance dimension: : Raw material costs
Activity Impacting Performance: : sourcing of raw material
Impact of Offsourcing Sourcing of raw material could go either way depending on raw material costs

 Performance dimension Unit Cost Production
Activity Impacting Performance: quality and transportation Labor/Fixed cos
the impact of Offsourcing: quality may suffer

Performance Dimension: Freight costs
activity impacting performance: transportation modes and-and quantity
Impacts of offshoring: higher freight costs  could go either way


Performance Dimension: Stockouts
activity impacting performance: Ordering, production transportation with poor visibility
Impacts of offshoring  : Increase"


Performance Dimension: Minimum order quantity
activity impacting performance: Production and transportation
Impacts of offshoring : larger minimum quantity increase inventory


Performance Dimension: working capital
activity impacting performance: Inventories and financial reconciliation
Impacts of offshoring "larger minimum quantity increase inventory