In-house Stores Management (Outsourcing of store operation)

Outsourcing is a business practice in which a company hires another company to perform tasks, handle operations. The outside company, which is known as third-party service provider, arranges for its own staff to perform the services either on site at the hiring company's own facilities or at external locations.

Normally, the Stores operation is treated as non-added value activity and decided to out-source to a experienced service provider with a objective lower costs, improve efficiencies and gain speed.

The underlying principle is that because the third-party provider focuses on that particular task, it is able to do it better, faster and cheaper than the hiring company could.

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