Critical Thinking

Outsourcing and offshoring initiatives can help an organization fine-tune its business model to become more resilient and profitable. At the same time, these initiatives present challenges.

In today’s highly competitive, extremely variable, and dynamicenvironment, many firms are seeking solutions. Supply chain management becomes more sophisticated and the difference between what firms want to achieve and what they can do in-house continues to grow, firms begin to realize that doing the right thing becomes more interesting than doing everything. Accordingly, they are becoming better focused and more specialized by outsourcing and offshoring activities that are far from their core businesses. In many cases firms decide to outsource this function in whole or in part to agents or third-party logistics firms.

Using this concept of offshoring and outsourcing answer the following questions by taking any Saudi Local company or any Multinational company.

Questions: Each Question Carrying 2 Marks.

1. Define Third party logistics firms? Discuss its working procedure? (400-500 Words)

2. Explain the motivational factors for going internationally?(400-500 Words)

3. On what ground companies choose developing country’slocation for offshoring? Use examples. (Mention the country and decisive factors). (400-500 Words)

4. Why do companies outsource? (Use example of any Saudi company along its objective and scope for outsource).(400-500 Words)

5. Assess the reasons for using third party logistics service in Saudi Arabia? Using examples, Explanation regarding their logistics performance and priorities.(400-500 Words)

The Answer must follow the Key word/ outline points below:

• Outsourcing ,offshoring ,Third Party logistics

• Their Main functions

• Motivational Factors /Drivers

• Any local example

• Reasons with suitable Examples

• Reference