Thursday, December 4, 2014
TWIF Flattener #8 - Insourcing
Use one of the current events sources linked at http://svhs-hwc-spring2015.blogspot.com/2014/12/approved-sources-for-twif-current.html to find a recent news article that relates to, supports, or refutes Friedman's assertion that insourcing was a "flattener." Your comment should include the title of the news article, a link to the article, and a summary of the article including an explanation of how the article relates to this point. Don't forget to check your rubric for evaluation criteria!
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The Myth of the U.S. "Insourcing Boom"
ReplyDeletehttp://www.dissentmagazine.org/blog/the-myth-of-the-u-s-insourcing-boom
Friedman's 8th flattener deals with insourcing, which is having industry in the country that owns the company. Friedman clings to the example of UPS, who does repair for other companies such as Toshiba. UPS made made $2.4 billion from Insourcing, but from this article, Roger Bybee states that insourcing is not the boom some people see it to be. When people talk about insourcing, they usually stick to a few great success stories, but in reality, insourcing gives minimum wage jobs to the United States, but it would still cost less to produce the goods in China because of the massive minimum wage gap, according to Bybee.
"Is 'Made in the USA' coming back?"
ReplyDeletehttp://www.bbc.com/news/world-us-canada-21541858
The eighth flattener Friedman discusses is insourcing. He explains how UPS has become much more than just a package delivery company. Friedman gives an example how UPS has began to perform more than just logistic tasks he tells you how a problem with a warranted laptop from Toshiba will be dropped off at a UPS store, then be shipped to Louisville and fixed by UPS personnel. In a news article from the website BBS News website titled “Is ‘Made in the USA’ coming back?” it states that “the new fashion is insourcing. It also quotes a worker that states "So we are more efficient, we waste less time, and then we redesigned it so it is a better product." This makes me question whether outsourcing will be useless in the near future and insourcing will be the new trend, or will insourcing slowly burn out.
"FedEx, UPS step up their holiday shipping performance" http://www.washingtonpost.com/news/business/wp/2015/01/01/fedex-ups-step-up-their-holiday-shipping-performance/
ReplyDeleteThe eighth flattener Friendman discusses is about insourcing. He talks about how the business UPS is more than a delivery service. They analyze its packaging, manufacturing, and delivery process. I looked up an article about how UPS and FedEx stepped up their delivery performance for the holidays. Both deliver 98 percent of there packages on time by Christmas Eve. These two companies were determined not to be backed up like they were last year due to the weather conditions. . FedEx predicted that it would move more than 290 million packages, and UPS predicted it would handle 585 million. Neither has announced whether they did indeed break those shipping records. However, etailers widely reported online shopping during the holiday shopping season.
“Shoe Company Practices Insourcing for the Sole”
ReplyDeletehttp://www.npr.org/2012/01/25/145702121/shoe-company-practices-insourcing-for-the-sole
This flattener is mainly about insourcing. Insourcing is a process used by the major packaging and delivery company, UPS. Because of insourcing, UPS has become more important than almost delivery systems, and helps companies streamline their operations. The company began to perform more than logistic tasks. An example of this would be if a laptop was broken and needed a repair, it could be dropped off at a UPS store and then be shipped somewhere across the country to be fixed. This article explains how many jobs were lost because of outsourcing, and begins to explain that insourcing would be a better plan for their shoe company. This article implies that insourcing may be the new way of the future, and help businesses and companies.
The eighth flattener Friedman discusses is the use of insourcing in companies. Insourcing is a process that successful companies use. For example, UPS has become much larger than just that of a delivering company. The company is now a multi-dimensional company. They have gone from delivering, and packaging. To having people walk into their store and request for a delivery no matter the destination. The article "Insourcing Companies: How they Raise our Game," discusses how companies that use insourcing are far more efficient and create an increasing number of in-store job opportunities. Outsourcing is not a successful technique because it lessens jobs and proficiency as a business. Insourcing is the future of successful companies and businesses. http://www.ofii.org/resources/insourcing-companies-how-they-raise-our-game
ReplyDelete"In-Sourcing Reasons Click For Master Lock" Author: Scott Horsley
ReplyDeletehttp://www.npr.org/2012/02/15/146907545/in-sourcing-reasons-click-for-master-lock
In this article, Obama makes a trip to Milwaukee and talks about insourcing for the business Master Lock. He explains that fuel prices are getting higher for shipping across the Atlantic, prices for labor in China are rising, and America is starting to be more productive. Withing the last month American factories gave out 50,000 new jobs. It also explained that Master Lock was looking to start bring their business back to the US. This contrasts Friedman's idea that more companies are ousourcing. Many companies were in the past but now this article shows that more businesses are looking at coming back to do their work in the US. Perhaps roles between China and America will swap.