June 15, 2016 4:10 pm | Updated 7 months ago.
T opts for Outsourcing
T’s central warehouse is planning to revamp the sourcing arrangements as the major supplier of spare parts to Massachusetts Bay Transportation Authority (MBTA). The delivery time would generally be more than three days, therefore, the T officials are looking at possible means to privatize its warehouse department to an organization with a focus on logistics.
According to chief procurement officer of T’s warehouse, Gerald J. Polcari, outsourcing the warehouse operations would eventually improve the quality of service that is being delivered at present. The bulk of inventory of T’s warehouse (about $38 million) is located in Everett and Charlestown.
An audit mentioned that T has about $22.7 million excess inventory, an amount that could be saved by proper management. The company management also mentioned that overhauling the entire system internally would be very expensive and thus outsourcing is the best available solution. The Boston Globe highlights in detail the core issues related to outsourcing. This is an example where outsourcing is a necessity to achieve better results for the business owners as well as the workforce.
Date of Publication: June 14,2016