Question
To determine whether to outsource or insource distribution, a weighted scoring selection model will be applied. Calculate the weighted scores for both options and select
To determine whether to outsource or insource distribution, a weighted scoring selection model will be applied.
Calculate the weighted scores for both options and select the one with the highest overall score to optimally support the distribution-centric strategy. Using the weighted scoring selection model (you may use hypothetical factors) to justify which option will optimally support their strategy.
1.Cost Efficiency (Weight: 30%): Compare the total cost of outsourcing versus in-house distribution, including operational costs, labor, and infrastructure setup.
2.Control & Flexibility (Weight: 25%): Assess the level of control and flexibility in adapting to market changes with in-house distribution compared to outsourcing.
3.Quality & Service (Weight: 20%): Evaluate the quality of service provided by in-house distribution versus outsourcing partners. Risk Management (Weight: 15%): Analyze the risks associated with both options, including supply chain disruptions and dependency on external partners.
4.Scalability (Weight: 10%): Consider the scalability factor, assessing how well each option can adapt to business growth.
NB: Read case study "SALLY WILLIAMS FINE FOODS: GETTING TO MARKET," to answer the questions above.
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