passage below require analysis and breakdown

As different markets emerge, and as others grow, there is an increasing need for outsourcing. There are many reasons, some of them good and warranted, why a company would choose to outsource parts of its supply chain. One of the ideas behind outsourcing certain parts of an organizations supply chain is to make them more efficient. That last statement applies to all businesses because in reality, becoming more efficient allows for growth and more profits; however, not all businesses outsource just for those reasons. Some businesses outsource to save money on logistics and some businesses outsource some of their business functions to streamline other services such as software and development. But one of the main reasons I feel that an organization will outsource is to focus on enhancing their core competencies and do what they do best, whether it is providing better services to their clients, or making better products for their clients.

Outsourcing became a Thing back in the eighties and was not very popular at first. But as time has gone on and global markets have emerged more successfully, outsourcing for certain firms is becoming the norm. This does not hold true for every business because each and every company is unique in their own way, even in the same industry; but the idea is the same. We did not all grow up the same and we all wont be successful, but how we structure our lives is what makes us who we are. The same holds true in business. For example, Nabisco, Inc., spends millions on outsourcing their warehousing to ensure timely logistics to their customers (Terreri, A. 2001). This sounds like a lot of money spent, but in reality, it saves them even more and increases the quality of their products as well as the timely delivery of their products. On the flip side, Hatfield Quality Meats, Inc. chooses to continue doing business the way they do because of their flash freezing processes and how they deliver their products to their customers (Terreri, A. 2001). For Hatfield Quality Meats, outsourcing their logistics would only get in the way and prevent them from focusing on their core competencies.

The challenges of outsourcing can be extremely difficult. A company needs to be able to embrace and accept the need to outsource, but they also have to be able to manage that decision and the outsourcing companies that they choose to partner with. Whether it is logistics, software development, parts manufacturing, or production; all of these different formats require a different need for managing the outcomes. Some organizations might give up hope in outsourcing because they do not have the means necessary to manage this, or outsourcing might prove to be too expensive. While this is a true reality, every organization is different in the ways that they can manage getting from point A to point B.