When we think of business, we think of a company that provides a service or product to a customer. However, when the customer you are servicing is another business it changes the dynamic considerably. In today’s business world, it all comes down to providing a quality product or service that will allow your customer to better service their customer.
In the past, a business had to do everything in house. They had to have accounting departments for billing, collections and taxes. They had to have a human resources department to insure employee benefits and rights were being utilized. They needed computer programmers and inventory managers and they needed to produce products.
We live in an age of technology, which has lightened the load. But, there is still much to do that require human hands and minds. Businesses that cater to other businesses are in high demand. By outsourcing responsibilities such as payroll, a business can save money that would otherwise be invested in management, time-keeping, payroll and payroll taxes. A payroll company collects the time from the employer and handles everything from deposits to W2’s and simply submits a bill at the end of the month. If the payroll company is less expensive than the cost of doing the job in-house, everyone is a winner.
The same principle applies to printing needs, advertising and travel arrangements. Not only does outsourcing these things save the business money, it also raises the quality and timeliness of the jobs at hand.
In the past businesses had to shut down their companies to take and record inventory. By using another company to take inventory, their business can run seamlessly while the job is being done.
Many companies use other businesses as suppliers — for example, the gentleman who runs a car brokerage service supplies companies like CarMax with used and fixed-up autos — his site is www.woodcarbuyer.com. Typically, the supplier would buy the product from another individual or business and then distribute it or sell it to the end user, which again could be an individual or a business. This benefits the business that made the product. They do not have the expense of having a shop and personnel to sell their product to the consumer. The distributing company makes a profit by marking up the item and that covers their expenses. This is another “everybody wins” situation.
By having a great network of businesses that service businesses, everyone makes a profit and the end result is better product and better service for the consumer.
Business managers would do well to sit down and figure out what services and needs they have that can be provided from outsourcing. They can collect bids and quotes as well as check the references of the business they are considering partnering with. They must consider cost, time and what this adds to their company. If they take all this into consideration, they need to consider how this affects the consumer. Some things do not even show up to the consumer. However, if a company is taking on a new supplier or IT service, they need to know if there will be any transition time. Finally, they need to know if the services provided come with customer support. Does the company come to your office to explain the process to your employees? At the end of the day, it all comes down to service and profit.