The Apple corporation is one of the most powerful companies on the global business scene. The firm manufactures its materials in California but assembles them in China. The bulk of the work is seen in the American region, with casing and packaging projects taking place in the Chinese region. The firm manufactures in two main locations.
The Impact of Outsourcing to China
The company's manufacturing strategy on outsourcing assembly to China has not changed. Several jobs are also being outsourced to China. The initiative gives them access to lower-cost labor and gives them more time to manage the development of other goods in the region. According to Kabin (2013), the main goal that influences Apple's commitment to the outsourcing of jobs to China comprises the need to save time rather than money.
Factors to Consider When Moving Manufacturing Abroad
There are several factors that a company should consider before deciding to move manufacturing abroad. To begin with, there is need for the consideration of the cost of production in the target country. Factors that need to be addressed with regards to the cost include the cost of labor, the facility costs in the target and the other resource costs such as transportation costs. The company should further determine the use of tariffs in the subject region. Tax laws may work against a company's move when the tax tariffs are inclined against imports into the target country (Reyhle, 2016). Lastly, the company ought to examine the standards of production in the given regions.
The Influence of Technology on Outsourcing
The influence of technology on outsourcing cannot be overstated. Through technology, companies are allowed access to myriad professionals on the freelancing websites. Additionally, company officials are no longer compelled to move from one region to another to facilitate outsourcing. Instead, they can engage readily with professionals over the online social platforms.
Quality Control in Service-Oriented Companies
Quality control (QC) plays an immense role in addressing the needs of companies that are service-oriented such as Sprint Nexel. To begin, QC ensures that the standards of service delivery are streamlined to prevent the occurrence of poor quality service. Thus, in the case of Sprint Nexel, it ensures that all of its competitors are adjudged based on collective standardized metric. Adherence to the QC further augments a company's reputation which results in increased flow of customers and revenue from the services that are offered within the institution (SIX SIGMA ONLINE). Alternatively, a service company that commits itself to the QC framework is more likely to secure financers during the turbulent times. Essentially, given that Sprint Nexel has committed itself to the QC, it is more likely to secure loans from banks and financial institutions.
Methods of Quality Control
An improved reputation, as a result of adherence to QC, inspires increased following among the clients which in turn translated to even more revenue for the subject company. Additionally, such a company will be empowered to acquire funds from banks and financial institutions. Some of the methods that can be engaged by companies to control quality include failure testing. Failure testing involves testing the produced product until it is verified to withstand adverse conditions. The next quality control method is provided for by quality assurance which is a commitment by the company to assess the development, designing, production, and the servicing of a given product.
Reference
Kabin, B. (2013). Apple’s iPhone: Designed in California But Manufactured Fast All Around the World (Infographic). Entrepreneur. Retrieved on October 30, 2017 from https://www.entrepreneur.com/article/228315
Reyhle, N. (2016). Factors to Consider Before Outsourcing Your Manufacturing Overseas. Retail Minded. Retrieved on October 30, 2017 from https://retailminded.com/factors-to-consider-before-outsourcing-your-manufacturing-overseas/
“The Important Role of Quality Control in Business”. (n.d.). SIX SIGMA ONLINE. Retrieved on October 30, 2017 from https://www.sixsigmaonline.org/six-sigma-training-certification-information/the-important-role-of-quality-control-in-business/
