Operations and Supply Chain: Outsourcing Offshore at Darden

Operations and Supply Chain
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Operations and Supply Chain
Global supply chains and outsourcing have enabled companies to expand their customer base, obtain higher-quality products and services, and increase their profitability (Munjal et al., 2019). Multinational companies like Darden, which engages in global supply chain and outsources most of its operations have witnessed the benefits of these activities. However, they come with challenges.
Reasons for Outsourcing
Companies outsource some of their operations for many reasons. The first reason is to reduce labor and operation costs. This strategy allows the company to access affordable labor. With globalization, companies desire to expand into new and emerging markets. Some of these markets have low labor costs due to the absence of minimum labor requirements (Iqbal & Dad, 2013). The second reason is to gain access to skills and expertise it would otherwise not obtain (Fisher College of Business, 2010). Through this strategy, the company can find the expert assistance it requires to complete certain tasks.
The third reason is to improve productivity and efficiency. Choosing an outsourcing company that specializes in the needed service or process helps in achieving a more productive, efficient, and high-quality operation (Optimal Outsourcing, 2015). This is because the outsourced functions are completed by highly-trained experts in the field. Doing so gives the company a