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In your replies to at least two peers, discuss potential risks of outsourcing for the examples they providedfor example, risks to supplier quality or stability, intellectual property, or reputation. The following questions may help develop your responses:

Can you provide an example of an organization that started outsourcing the supply chain and then stopped? What risks did the organization face that caused them to stop the project?

Can you provide an example of an organization that outsourced similarly and faced reputational damage due to the project?

When I think about an organization that has created value for itself by outsourcing part of its supply chain, I think of Amazon. Amazon depends on outsourcing to keep its inventory management efficient and running smoothly. Products that are infrequently ordered are not stored in regular Amazon warehouses. It may surprise you that third-party sellers are behind over 50% of Amazon's sales. That amounted to over 3.4 billion products sold by third-party sellers in one year according to a May 2020 Amazon Report. (LeBlanc,2020). This has benefited both Amazon and consumers. Amazon does not have to build or store these items and gains a profit selling them. As a consumer, we get cost savings, and the ability to get almost one-stop shopping for whatever we are looking for.

When Bezos launched the company in 1995, his sole aim was to earn money without much ado. At first, he aspired to hassle-free operations. He wanted to concentrate more on earning heavily and satisfying his customers also. (Charania, 2022). This was why he started outsourcing, but then the company grew, and the benefits came to both Amazon and the consumers. This created value for Amazon because consumers wanted the best prices and products quickly, and Amazon gained profits by selling other companies' inventory and expanding globally. This also provides value for suppliers to sell their products through Amazon.