Brainteasers: How much stackable, non-flammable product is there in an empty intermodal shipping container that measures 20ft x 8ft x 9ft?

When Do I Need to Pull the Trigger on Outsourcing?

This ISC is coming from a country that uses the Metric Units (m, kilos, etc.). Make sure to convert it into Standard English Units (ft, lbs., etc.)

Your business is booming. The YOY Growth numbers look great! The day-to- day activities move at an accelerated speed. You get lost in the daily minutia. Things look great until you look at the big picture. The glitches, inconsistencies, mistakes, and misfires add up to show a different story. You assess, investigate, and deliberate. You are losing money. It is time for you to ask questions. How do we solve these problems? Should we OUTSOURCE? If we need to outsource, how do we know if we should outsource all, some or none? How do we assess our company’s readiness?

SIGH! It's dizzying. Don't stress. Recollect.

Don't allow your company to digress.

Here are tips on discerning when your company should outsource. 

What functions should I outsource?

Here is a list of questions that we have formulated. If you answer "yes" to a lot of these questions, your company is probably a good candidate.

Is the process or operation highly complex?

Highly complex functions take a lot of time and concentration. It requires too much of your attention. Possibly, there are more productive activities that you are not allowed to focus on. These activities will allow your company to be more profitable. For example, if you don't have " x" to do, it will allow you to focus more on business development.

If I keep this function in-house, is my business at risk?

Is your company losing money by keeping this function in-house? If you do not do it efficiently and effectively, you are probably losing money in the grand scheme of things.

Can someone do it better?

If it is something that you are not strong at, there is probably someone else who can do it better. Focus on what you do best. Keep trying to improve your formula.

Can someone do it cheaper?

This is self-explanatory.

Are we a very small fish?

If you are a small fish, you are probably working with a shoestring budget. You probably cannot afford to pay for the talent that you need.

Outsource it!

Is the function highly seasonal with heavy volume fluctuations?

If this is the case, it may not make sense to keep a full - time staff. You can always hire temp. workers. The problem with this is these individuals are not full - time employees. They are not as invested into doing the job to the best of their ability because they know that the job is temporary. Using a vendor solves both of these problems.

Does it require highly specialized knowledge, training, tools and resources?

Highly specialized activities require these types of things. Typically, specialized /customized things cost more money. Your company may not have it in the budget to be able to afford these things.

Are we better at execution or managing execution?

You understand the big picture. You understand the ins and outs. You know the strategy and plan. You do not have the time to execute it effectively or you're just awful. It's the difference between an amateur and a professional. An amateur knows what needs to be done. A professional executes.

Factors Contributing to Successful Outsourcing

Personal relationships on an operational level

It is key to keep communication open. This allows for the sharing of ideas and the improvement of the processes.

Carefully drafted contracts with detailed descriptions of services and performance tracking

A carefully drafted contract is important. It holds both parties accountable. It also ensures that everyone is on the same page. What is expected out of the vendor? What is expected out of you? You can never please a person unless you know what they want.

Clearly measured improvement in service levels to customers

What have you done for me lately? There needs to be a clearly defined strategy to continuously look for areas of improvements that are in the best interests of the customer.

Clearly measured cost reductions

There will come a time when you have to show upper management the value of your outsourcing vendor. This will help you to plead your case. Executives are judged on their ability to improve the profitability of the company and reduce the costs of the business. Speak their language to be effective.

Answer: None. The container is empty.

The Devil is in the details.