Lay off - Is this the only answer

Now days every company has started laying off employees to cut cost and turn around . Be it software companies or automobile giants . Lets us ponder why such things happens when going is great these companies starts hiring people in large numbers without checking whether they require this kind of large people or not . When things goes wrong then these same companies starts laying off people without any second thought .

This process of hiring people and then firing people in short notice has huge pyschological impact on the person affected .

Steps has to be taken by individual as well as companies to make exit process less painfull .

Companies
They should give persons a reasonable time to seek other employment .
Ask employee to gives services from outside on contractual basis
Explain employee reasons for the exit .
Transfer people to other subsdiary if the company is large.

Employee
Always be alert on the business scenario .
Keep channels for second source of income
Spouse can take the burden for some period .
Networking works in such circumstances .Be in touch with old employers and friends .
Check crendentials of companies before joining .

Laying off could be checked if it is made mandatory of companies get governement or legal approval before going for such action.

E -procurement

Sourcing for goods and services is crucial part of the supply chain yet one that until late has resisted automation .For many companies finding the best materialsor services at the best price and under the most advantageous shipping arrangements is a laborious process.Esourcing includes using web based technologies to automate and streamline the identification , evaluation ,negotiation and configuration of the optimal mix of suppliers ,products and services into supply chain network that an rapidly respond to changing market demands . supporting the complete sourcing cycle will require companies to cconfigure the appropriate mix of technologies , startegy and product and supplier expertise into e-sourcing frame work.
The world of web based purchasing , with market places , exchanges ,and auctions , is still evolving .The advantages to being able to scour the world for the best goods at the price sounds great theory ,but is not always great in practice .The business world is moving towards e-transport , e-logistics ,e-sourcing and e-procurement . These web based methods helps into cost reduction intiatives
E-procurement has following advantages
reduced transaction costs ,in an area of the total spend that dwarfs what's spent on indirect goods
reduction of stocks of obselete products and inventory for those products ,owing to more timely reaction of supply to demand
reduced level s in general, through reduced cycle times
quicker reaction to changing market trends ,enabling a manufacturer to gain competitve edge in new product dvelopment .
redeployment of procurement and other professional s away from transaction processing activities toward work that is more strategically important such as global
market research and analysis ,long term negotiations with strategic suppliers ,supplier development and researching of new technology tools that can elevate procurement and supply chain management peformance

Manufacturing Outsourcing

Industries have now days started a new trend of outsourcing manufacturing hubs to new locations .

This make sense as putting up a new plant with equipment requires lot of money and time . Getting closer to the market with outsourced partners can save huge amount of cost .

Following are the advantages of outsourcing of manufacturing .

1. No major investment in regards to capital equipment

2. Utilising partners or acquired units strengths in terms of market and labour.

3. Cost savings in respects of freight

4. In case of failure exit is easy without any major problem .

5. Raw material could be sourced locally which again results in saving

6. Can be done in any part of the world.


Precautions has to be taken for objectives which are clear to the contract manufacturer .







Technology to be transferred to the contract manufacturer .