In House Operation or Outsourcing

Your company has traditionally operated a fleet of vehicles wholly owned by the business and maintained on its principle site with full facilities. Due to the huge financial investment involved, the Board of Directors are formulating a strategy for the future with one area of investigation being the possibility of changing vehicle sourcing to contract hire.

As the Transport Manager, using a fleet type of your choice:

a) Compare and contrast the costs of owning and operating your own fleet with that of contract hire. b) Within a contract hire model, analyse the changes in control of the fleet that can be expected and outline how this model might meet sudden changes in demand. c) Discuss the effects of totally outsourcing your transport requirements whilst still meeting the expectations of your customers.

Answer Preview

Just as the name suggests an in house operations strategy means that all the business needs of a given company are taken care of in house, without input from a source without. Going by this strategy, it means that a company uses its own employees, resources, management to take care of its needs. Outsourcing, on the other hand, means that a company…

(2729 Words)