overhead costs Background: Frutronics Inc. is a $2 billion dollar firm with sales in consumer products and government systems and services. Founded…

overhead costs

Background: Frutronics Inc. is a $2 billion dollar firm with sales in consumer products and government systems and services. Founded in 1937, Futronics Inc. has been providing reliable communications services for well over half a century. Due to a sharp increase in competition, flattened sales and external economic conditions, Futuronics is implementing a corporate overhead reduction program. The proposal is to replace  the company’s central office stores by outside vendors and presents recommendations. Requirements: In a two-three page paper, discuss the option to implement outsourcing the central office functions, so as to reduce overhead and still maintain or even improve quality. The outsourcing vendors must supply the appropriate mechanism to make ordering easy, efficiently, quickly and at a cost savings. The vendors chosen must supply the current 500 products in the warehouse. If outsourcing is not the chosen action suggest strategies can be taken to reduce costs in-house?