A Big Issue for Home Appliance Manufacturers in China :: Outsourcing Retail Partner Manufacturing Essays

A Big Issue for Home Appliance Manufacturers in China Home Appliance manufacturers in china have made great progress accompany the fast development of the consumption of home appliance in the whole nation. There are many native home appliances manufacturers and foreign manufacturers especially those who come from Japan and South Korea, contest for this huge market. The competition among them is extremely scorching. To occupy the market, techniques, finance and management are undoubt tools for competing. However, the difference of those three elements among the manufactures become less and less. So another field was focused by those manufacturers and many issues arose. That is retailer. It is very difficult for those manufactures to compete with so many competitors in this big country by only their own branch representatives. Outsourcing retailer become absolutely important. However, common retailers can ¡Ã‚ ¦t help too much. What they need are outsourcing retail partner who keep stable relationship and supply long term retail service to them. The benefits of outsourcing retail partners are obvious but how to outsource is quite complicate and is the main issue will be discussed. Literature review 1. What is outsourcing ¡GThe definition of outsourcing 1. The process of transferring the responsibility for a specific business function from a employee group to a non-employee group (Zhiwei, Kathy, Joseph, 2001) 2. The outsource could be defined as a service outside the company acting as an extension of the company ¡Ã‚ ¦s business but responsible for its own management, while outsourcing could be defined as employing an outside agency to manage a function formerly carried on inside a company (Rothery and Robertson, 1995) 3. A transfer of an administrative responsibility to an outside organization, an arrangement that changes both service delivery and internal staffing patterns. Contracts with consulting firms, however, are also viewed by some as a form of outsourcing, particularly when close ties develop in long-term relationships.(Johnson and Cox, 1997) Others describe outsourcing as  ¡Ã‚ §the practice of handling over the planning, management and operation of certain functions to an independent third party ¡Ã‚ ¨ (Auerbach, 1996).  ¡Ã‚ §Finding new suppliers and new ways to secure the delivery of raw materials, goods components and services, by utilizing the knowledge, experience and creativity of new suppliers not used previously (Thames, 1994) 2. The benefits of outsourcing a supply partner To know the reason why the home appliance manufactures need to outsource retail partner. As Partner outsourcing is only a part of outsourcing, we need to find benefits or advantage gained from outsourcing and we can see all the benefits of partner outsourcing from there.