Futronics Inc Case

I have provided for you the best options that are going to change the future of Futronics, INC. I have found ways that will reduce the cost of how we do business by looking at outside sourcing for some of our in house services. I have put together the best options for both decisions. If we are to stay competitive we will need to save our company money so that we can focus on other areas that will help us crow and be profitable. The benefits of outsourcing are not just saving money, but give will give us the opportunity as a company to reposition ourselves in today's industry. The following are just a few of the benefits gained from outsourcing:

* No warehouse expenses

* Lower operational cost

* Discontinue inventory storage

* Eliminate inventory expenses

* Saving time on deliveries

* Customized customer care

A substantial amount of savings gained by Futronics and less hassle acquiring the items that we need to do our daily business.

The table below lists the relevant facts for and against outsourcing.

Futronics Central Store Comparison issue Outsourcing

Warehouse in Lexington operational cost $200,00 annually Warehouse space/cost Warehouse and annual cost eliminated.

Annual cost $900,000 Annual cost Savings of 6% or $54,000

Inventory cost $140,000 Inventory No inventory saving $140,000

New catalogue every six months Catalogue Specially printed catalogues in unique binders.

Order times 10-14 days Order cycles No longer than 10 days

Items delivered to dock or receptions area Delivery Secretaries' desk.

Catalogue has 500 items stocked. Catalogue Catalogue has 600 items stocked

The information clearly shows the areas that we can cut cost or totally eliminate the cost from the company's budget. This will also save Futronics, INC money and overhead expenses immediately. The personnel that are currently at the warehouse will be reassigned to other positions with-in the company. This will still save money and resources for the company. Moving forward with outsourcing Futronics, INC will be able to focus on other areas we could trim the fat and reposition our company to focus on or business goals and advance the company in those areas.

The future of Futronics is at hand and the future looks bright. We will be able to move our business to the areas we need to grow and position ourselves as industry leaders. Here are some of the improvements that we will