Outsourcing In Yellowtail Countries

1. Outsourcing

Outsourcing (contracting work out) occurs when a producer acquires goods or services from an external supplier rather than producing them internally. The main reason we decided to use a third party in the production of Yellowtail products is because Australia is expected to experience drought in the forthcoming years which would greatly challenge the production of wine in the country, as well as because petroleum costs are expected to further rise which would negatively impact logistics costs for our company by increasing them considerably. All this would diminish our effectiveness, limit production, as well as reduce our revenues and hence profits. Outsourcing would, in addition, bring our company numerous advantages, including reduction of labor costs as wages would be lower in the chosen countries, lower manufacturing costs, speeding up of the production process, gaining access to world class capacities, improving company’s focus, reduced taxation levels, better stock management, utilizing internal resources for other purposes, decreasing in-house investments, and sharing of risks. Although there are also certain disadvantages from outsourcing, such as less efficient communication, inadequate
High Quality Wines are given their own classification system: Controliran (comparative to French wines and rated higher than DGO wines), Country Wines (blended and consumed while young), DGO (Declared Geographical Origin- states the area of production), and Reserve Wines (wines aged in oak barrel). It should be noted that the best wines in Bulgaria are the Merlot and Cabernet Sauvignon varieties, which are very reminiscent of the greatest French