Outsourcing Logistics
Question: Considering that Sue is under a significant time constraint, do you think that outsourcing the entire logistics would be a good move for Honeyland?
In my opinion, Sue outsource the entire logistics would able to bring benefits for Honeyland. The logistics of Honeyland are most certainly non-core activities. Outsourcing these activities will prevent Sue from diverting her attention from productions. The reason for paying more attention to production internally is that quality cannot be compromised since she is dealing with high-priced niche products, quality is a major factor. Outsourcing this logistics function will allow her to be stress free about the delivery, while another company that specializes in logistics will carry out necessary duties effortlessly. Instead of that, export operations are difficult because the New Zealand's MInistry of Agriculture and Fisheries (MAF) requires strict compliance with their phytosanitary and bio-secutriy regulations, including the inspection of all exported organic products and detailed documentation. If Sue outsouce its logistics of Honeyland, the third party logistics service company will help Honeyland to take care of all the formalities, including the customs' declaration and documentation fo bio-security requirement. While Sue just have to make sure the quality of Honeyland's products are meet the requirement of MAF's export regulations.
In my opinion, Sue outsource the entire logistics would able to bring benefits for Honeyland. The logistics of Honeyland are most certainly non-core activities. Outsourcing these activities will prevent Sue from diverting her attention from productions. The reason for paying more attention to production internally is that quality cannot be compromised since she is dealing with high-priced niche products, quality is a major factor. Outsourcing this logistics function will allow her to be stress free about the delivery, while another company that specializes in logistics will carry out necessary duties effortlessly. Instead of that, export operations are difficult because the New Zealand's MInistry of Agriculture and Fisheries (MAF) requires strict compliance with their phytosanitary and bio-secutriy regulations, including the inspection of all exported organic products and detailed documentation. If Sue outsouce its logistics of Honeyland, the third party logistics service company will help Honeyland to take care of all the formalities, including the customs' declaration and documentation fo bio-security requirement. While Sue just have to make sure the quality of Honeyland's products are meet the requirement of MAF's export regulations.