Someone found a human finger in their ice-cream.
The ice-cream company, which outsources its manufacturing, have stopped the outsourcing and decided to manufacture their ice-cream themselves.
This shows how outsourcing is not a solid way to build a business. It may work in the short term, but in the long term, it has so many uncontrolled variables which makes it difficult to ensure proper quality control and timeliness.
Though big companies like Apple outsource their manufacturing, but due to their sheer scale, they have huge control over their vendors.
On the contrary, A small business does not have much say when it comes to such matters with their vendors.
Most of the time a company requires outsourcing almost everything in the initial phases of its operations. But the long term goal should be to build their own supply chain.
No matter how cost effective it seems at first, as the user base grows, it becomes counter intuitive.
Ola and Uber are struggling as they cannot control their cars as they do not own them. They are merely connecting cabs with passengers.
But if they own their own fleet, hire their own drivers, the day to day issues could be minimised as it would have been easier to control everything. This should have been their end goal.
What are your views on this?