DENISE: Now we're looking at the options for handling our on-line orders. They're going through the roof and frankly the lead-time for delivery is blowing out. We need to improve our performance in this area. Any suggestions?TAN: Well, as I see it, we have three options. The obvious one is to employ more people to do the job. Another alternative is to automate the system more - cut down on the physical handling.
JOHN: And the third option?
TAN: We could outsource.
DENISE: What are the pros and cons?
BARBARA: Well, looking at increasing staff versus automation, we have to consider the cost. Automating has a higher capital cost than putting on more staff. On the other hand, employing more people is more expensive over a long term. If we keep growing, it'll cost more in the long run.
DENISE: How likely is it that we'll see continued growth?
TAN: I'd say it's a certainty.
JOHN: I'd say a high probability. Nothing's certain in business.
DENISE: So what about the third option?
TAN: Outsourcing? Well, it does take the problem off our hands. But we lose contact with our customers.
DENISE: What about the bottom line?
BARBARA: Outsourcing is the cheapest option, and the easiest - in the short term. But if we want to keep the operation in-house, the best option is automating our system. The only down side is, we're taking a risk that our business will keep growing.
JOHN: Which we hope it will.
DENISE: We certainly do.
