Free «Rebecca Liu» Essay

In the business community, Business and industry foodservices, commonly referred to as B&I, are the most outsourced function in the sector. These services are mainly those offered to company or institutional employees at the work place thereby reducing inconveniences. The business and industry foodservices are also seen to benefit the company since they may be used to generate more income and thereby increase company profits. Outsourcing is the intentional act of obtaining goods or services from an outside supplier mostly to substitute an internal source within a company or institution and is also referred to as contracting. As most companies experience, outsourcing in place of internal utilization of resources saves money, time and most of all resources which improves the quality. It speeds up delivery of products to the market. Outsourcing especially the food services department allows a company to concentrate on the core competencies and most of all reduce company costs. It plays a vital role in the minimization of debt through shifting capital to a contract company’s books of accounts. The reason why food services are the most commonly outsourced function in the business community is mainly because it is the only unit or function of a company that does not need direct involvement by the employees. It is only an additional service that provides efficiency and convenience as the time that would have been alternatively used for lunch breaks is saved, late reporting and possible accidents are avoided. Additionally, companies may make extra profits from outsourcing making it a luring venture to most company managers.

Business and industry food services provide production management that includes manufacturing and distribution of food and its related services to employees whether onsite or offsite catering. Contract management of business and industry services or outsourcing have recently gained popularity basically since the process results in several advantages to a management contractor. The most obvious advantage is the control of resources that allows flexibility and versatility to a company’s employees. Control of resources provides managers with the ability to regulate activities and spending thereby reducing costs. A management contractor is also likely to enjoy client relationship that is improved since services are provided as a result of improvement of routine business transactions in the past. The manager reviews employee complaints and improves them thereby meeting their needs. There is also the advantage of easy and flexible decision making process. In the normal internal provision of business and industry food services, decision making follows a chain that may take a long time to constitute and come up with a viable decision. A contract manager is able to act fast and does not have to follow a hierarchy for consultation thereby saving time. Less paper work is also achieved which is the welcome news to any management contractor. The contractor management program also centralizes, qualifies, and monitors contingent workforce that involves fewer employees. This allows strict supervision for sensitive departments such as the food production department that is delicate hence better customer response and support.

The food service operations are unique in several ways; despite demanding extra care and caution while handling, food service operations involve large varieties and widespread choices that are determined by the customer. This makes it hard for any company to allocate enough resources including manpower to facilitate standard delivery of services with better customer relations and minimum complaints. Another aspect of food services operations is that most companies do not include the service in the normal running of business. This means that for the service to exist, company employees would have to be deployed to these new departments. This would reduce efficiency and may increase costs at a time when the economy demands cost reduction.

In conclusion, outsourcing or contract management is a smart choice for any company aiming at making profits and minimizing costs. Employees are fully available, time is not lost. A company may make extra coins from the initiative making it a favorable choice among many modern companies.