Outsourcing for the First Time
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Red Mountain is the leading Company regulated by the Food and Drug Administration (FDA), to offer independent testing services to pharmaceutical companies. They operate under strict guidelines by the FDA. Although the Company prides in fast turnaround of tests, accurate test results and specialty, the companies who are the customers, feel that much has to be done to improve on the turnaround time of the results. That concern is raised amidst excellent computer interfaces and a good working relationship with the FDA. In response to that, under the expertise of Cindy Anderson, Red Mountain Lab is considering reorganization to allow them to outsource some of the activities. Outsourcing is a strategic move used by companies to have some of the activities traditionally done within, to be performed by contracted firms (Iqbal & Dad, 2013). During outsourcing, a company using the strategy embarks only on core activities.
The core activities of Red Mountain Lab is to test the pharmaceuticals manufactured companies to ensure high-level purity and deliver the results both to the FDA and the manufacturers. However, in the process of doing that, other supportive activities help the Company effectively serve its customers (Edvardsson & Durst, 2018). They include excellent communication and timely delivery of services. These are not the core functions of the Company. In respect to that, Cindy Anderson may advise the Company to outsource the services to the companies specialized in networking and communication. Notably, the Company will direct more of its resources to the core activities, which are testing the pharmaceuticals. The results of the move are that the Company will ensure more advanced testing services. Also, the Company will be able to increase the speed at which it communicates its results to the customers. Consequently, they will address the concern raised by the customers about the turnaround time of delivering the test results.
References
Iqbal, Z. & Dad, A. M. (2013). Outsourcing: A Review of Trends, Winners & Losers, and Future Directions. International Journal of Business and Social Science, 4(8), 91-107.
Edvardsson, I. R., & Durst, S. (2018). Outsourcing, Knowledge, and Learning: A Critical Review. International Journal of Knowledge-Based Organization, 7(2). https://doi.org/10.4018/IJKBO.2017040102