SOURCING

Public/Private Outsourcing Is Painful to Americans

Domestic corporations are outsourcing to other countries so many jobs that America has lost 1 million jobs since 2001. Major American contractors have been outsourcing hundreds of thousand of jobs to other countries in order to reduce costs. With the recent rise in food contamination and numerous product recalls, it seems appropriate to raise the question, how are supply chain cost reductions reflected in the cost of legal services?

With millions of jobs going to low-cost contractors in other countries, the U.S. consumer is becoming more alienated to the very protective services it worked so hard to established in the 20th century. Cheap low wages and providing few or no benefits to employees is increasing concern over product quality. Our last four executive Administrations, Bush-Clinton-Bush-and now Obama, have not helped domestic workers and those families devastated by these job losses, as public and private buying organizations too often practice outsourcing as a “good thing” and “a plus for their respective bottom line.”

Avoidance of US labor has been the core issue of hiring black and Latino contractors for greater than a half century. In 1978, Public Law 95-507 was introduced to help eliminate the avoidance of black-owned business subcontracting to help decrease unemployment among this target group. Thirty-five years later, the white community is feeling the effects of US business avoidance.

Outsourced jobs are no more than simple subcontracting to other firms. True competition will work to reduce pricing with inclusiveness of US workers. Global activity is ideally an important endeavor for living on the earth in peace. Notwithstanding, the US has never made good on its promise to heal a nation commandeered from Native Americans, and considerably built with unpaid labor. Outsourcing sounds good to those who are immediate concern of job loss, but outsourcing is a real paradox for the domestic tranquility of all citizens.

It is a daunting task to include new firms with a fair supply chain assessment. Illumined purchasing management professionals employ broad socioeconomic sourcing strategies that ensure a large variety of qualified firms in the final bidding analysis. Taking the right time to model and design buying logistics with VIABLE suppliers is the only way to ensure that our society benefits from the core investment of purchasing management professionals.

Large organizations with annual spend exceeding $50 million dollars have lots of personnel dealing with supply chain activities. Whether its delivering sales or services to customers, shipping products, negotiating with suppliers and trading partners, managing inventory, or gathering information on better processes, everyone has to communicate inclusive supplier engagement principles. Working with the National Black Business Council has provided our consulting activity expanded solutions for supply chain management that broadens the connection for internal corporate sourcing teams to engage quantifiable small businesses. In doing so, sourcing team members are empowered to perform with optimal productivity, maintain profitable relationships with new VIABLE suppliers as business partners.

The National Black Business Council extends a supportive automated system of companies with proven productivity and efficiency ready to deliver on time as prescribed by end-users. In the activity of internal supply chain management rarely is the work of initiative support undertaken to engage lesser known black and Latino-owned firms. By integrating a niche supply chain manager into the sourcing process a large buying organization can stay in firm control of business inclusion and generate the results necessary for a more perfect union.

The Central Challenges of Inclusion Strategy

Reducing Supplier Disparity It is becoming very important to change the most objectionable episode for the business community today that rests with the effective engagement of small business enterprise into corporate supply chain management strategies. The small business motif in America is rapidly shifting away from niche business, to expand as an unshakable and monolithic giant, pursuing to own, control, and operate every profitable aspect of the industry they serve.

There are two factors that weigh most heavy to implement a Corporate Inclusion Strategy; first, that the central challenge is to balance the need for utilizing economies of scale and responsiveness to small business conditions, and second, that the more emphasis companies place on scale economies the further they move away from prescribed corporate responsibility.

The economic gap does not have to widen more than it has unless those that sit in commanding positions wish to make it so. The power base that seems to accompany wealth is where the focus of this significant dilemma rests. Wealth is dictating non-competitive contracting, an idiom that a competitive society should never see or hear, however it is occurring in the bowels of our government and the daily fiber of investor-owned corporations.

Unshakable entities are consistently gaining influential control over production and distribution and thereby increasing the economic divide. The absence of competition leads to higher pricing for every concern in the supply chain and yields a general lack of responsiveness to the needs of the American consumer.

Our much needed advocacy groups are growing weak through confused states of global oppression, fabricated wars, and greed. The era of speaking out for broader competition, an equal awareness of product prices and volumes, eliminating discrimination, total mobility of productive resources, and complete open access to the process have almost disappeared. The rallying cry now is feed the hungry and fight cancer.

Noble as these causes are, the drive of change comes from people evolving with imagination and independence. Pure competition levels the playing field, but yet it remains the furthest concept of a theoretical ideal situation that exists today. How do we collective work together toward Closing the Gap of the Economic Divide?

Corporate America is taking outsourcing lightly as the only main reason for doing it is to improve the bottom line. Sadly, outsourcing takes reduced costs and reduces revenue access from lost consumers. Outsourcing is extremely complex and complicated undertaking and each facet of this activity needs close review. There is little margin for error if full value is to be obtained.

However, this need not be a trauma, or an adventure of blind exploration. The potential benefits are well documented, and inclusive strategic outsourcing is now mature enough for the path to have been trodden countless times previously.

 

‘X’-Tier Supplier Inclusion

Buying organizations purporting methods and procedures for 2nd-tier purchasing with small businesses should have an unlimited-tier (X-tier) approach toward inclusion. Buyers invest corporate dollars to make the best of producing a product, and to that end should know how to capture their secondary spend with contributors’ input to the final product. A lack of awareness may lead to recalls and cancelled orders.