Customer Value
Value to Customers
As a leading cGMP laboratory, Celsis Laboratory Group
takes pride in our relationships with our customers.
Many of the world's leading household name pharmaceutical
companies have already come to trust our high quality
services offering with superior customer service and
of course our commitment to confidentiality.
Committed to Leading
Our market in Quality
- Top Pharmaceutical audited and approved
- Registrations - FDA, DEA, NIH, USDA, EPA
- Highly controlled quality system
- Welcome your QA audit process
Contact us today to see how we can provide you cost
effective ways to add the technical resources you
need to manage your workload testing deadlines. All
within your budget constraints and with the quality
assurance you need to put your name on the product.
Why Outsource?
Strategic outsourcing secures a competitive advantage.
Many firms are winning by examining what they do best
and outsourcing other processes. By outsourcing non-core
activities, you maximize your internal resources and
increase the quality of the products and services
you offer. A partnership with your supplier can give
you an advantage.
Outsourcing activities are rapidly increasing. Strategic
outsourcing, a partnering approach, is developing
into a significant approach to business management.
Management frequently must decide whether to establish
a program to test internally or to outsource. Two
issues to identify in successful outsourcing are the
right operations to outsource and the right firms
with which to collaborate. A successful partnership
is a win/win situation for both parties. Starting
right is essential.
Successful
Outsourcing
Benefits
of Outsourcing
Some
Perceived Risks to the Outsourcer
A
Partnership
Successful
Outsourcing
Companies have recently begun to consider outsourcing
as more than an excess-work/low-labor tactic and more
of a competitive strategy. Strategic outsourcing helps
you get the most from your internal resources. What
should you outsource? The best processes for outsourcing
require the least supervision and design. Look for
firms that are proficient and predictable, and with
whom you can communicate well; then analyze some important
factors.
- Determine the activities that represent core
competencies. These activities let you provide value
to your customers and provide you with a competitive
advantage. You should not outsource core activities.
- Consider elements that are vital, yet not core
competencies. Maintain processes and services that
give you the edge. If a vendor clearly can perform
the process more efficiently, then it is probably
an opportunity for outsourcing.
- Evaluate market efficiency, costs, and competition.
Suppliers are better able to compete for your business
in a more competitive market.
- Examine the costs of managing the outsourcing
function. The costs should be less than managing
the function internally.
- Estimate the cost of processing the task in-house.
- Finally, request bids from potential suppliers
including transaction and maintenance costs.
Because outsourcing lets you turn your resources
and energies to your core competencies, many important
cost savings are not directly measurable.You may not
need to assess all the advantages of outsourcing in
order for it to be profitable. Some opportunity costs
do not directly translate into dollars, yet contribute
to profit through a better utilization of resources.
Two notable costs are those incurred by suppliers
and the costs of changing to a new supplier. Organizations
should not outsource core competencies or strategic
processes that provide competitive advantage. The
decision should include an internal analysis of the
core activities and an external analysis of market
conditions. If firms can minimize costs associated
with managing the partnership, they should outsource
the process.
Benefits
of Outsourcing
The potential benefits of outsourcing are many.
All companies have limited resources and need
to allocate them for maximum return. By shifting
more assets into the company's core activities,
the business will be able to purchase resources
and enhance its competitive position.
Outsourcing allows the buyer to take advantage
of the best suppliers available. A supplier that
specializes in the performance of a particular task
- i.e., its core competency - is superior in the
critical elements of that task.
Outsourcing allows the company flexibility to
convert fixed costs to variable costs. Imagine the
costs if company A makes equivalent investments
in the efficiencies that dedicated vendor company
B has made in all of its business activities.
Therefore, outsourcing allows companies like
company A to provide its customers with a superior
service in its non-strategic functions by partnering
with company B.
Superior suppliers often have industry knowledge
and experience that comes from working with a broad
base of clients.
For industries with regulatory requirements,
the knowledge and experience to meet government
approvals (EPA, FDA or USDA) or compliance standards
(cGMP, GLP) can be a significant asset when trying
to bring products to the market quickly.
Experience with regulatory agencies is critical
to managing the relationship with them in a timely
cost effective manner.
Outsourcing lets you take advantage of the economies
of scale developed by the supplier. The supplier
performs the task for many customers and translates
the volume to lower resource costs. These economies
allow the supplier to perform the same task more
efficiently than you do and pass this advantage
to you.
Outsourcing can also reduce over-head. Organizations
tend to underestimate the costs associated with
constantly managing an internal activity.
Some Perceived Risks to the Outsourcer
Companies may fear they will lose skills by outsourcing.
This happens, but the loss will not match the supplier's
skills, and the outsourcer can re-direct efforts to
core activities. Another fear is of a breach of confidentiality.
A secure signed and dates confidentiality agreement
will protect both parties and put them at ease. Can
the outsourcer lose control over the contractor? Successful
outsourcing depends upon a partnership in which the
objectives of both parties are clear and in writing.
A Partnership
In an effective outsourcing relationship, the supplier
satisfies all the outsourcer's needs. Costs are minimized.
Both understand and agree with each other's intentions.
Patterson and Hass (1999) suggest that these elements
must be present:
- Clear shared objectives
They lay the foundation and communicate the goal.
- Mutual need
- Risk sharing
Parties assume comparable or nearly comparable risks.
An imbalance of power can compromise the partnership.
- Mutual trust
Begins, grows, and develops over time as both partners
establish their commitment to making the partnership
work.
- Mutual reliability
Both parties need to know they can count on their
partner to stick with them even when difficult decisions
and actions must be taken.
- Cooperation
When each organization is successful, both can and
should reap the benefits of success. Unilateral
decisions or actions destroy the trust and the respect
that have been established.
- Commitment by management
Top management must support the changes in systems,
organizational structure, and culture.
Management needs to realign any adversarial attitudes
of its staff by communicating a vision while also
promoting trust in the new relationship.
Companies are challenged to originate, formulate
and market products. Many find it difficult to manage
all the functional areas of a business. Increasingly,
successful companies are concentrating on value added
core activities and outsourcing those activities that
can best be provided in the market. Companies are
simplifying their buyer/supplier interface and balancing
their organizational mission to build successful partnerships.
With diligent planning and selection, outsourcing
can be an essential factor in the success of your
business. Celsis Laboratory Group welcomes the opportunity
to work with you in a win/win strategic outsourcing
partnership.
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