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You work as a business improvement analyst in the supply chain department for BeanCo, a food manufacturer of tinned foods in country New South Wales. Its core products are 400 gram tins of beans, chickpeas and lentils. The fresh beans and legumes are sourced from local farmers to be cooked and canned in the BeanCo’s manufacturing plant for sale to retail supermarket chains. Of importance, the company CEO has just launched a new strategy that focuses on supply chain efficiency and cost reduction given the increasing competition in the industry and pressure from the 1 big retail supermarkets. The strategy identifies potential value from sourcing cheaper inputs across the supply chain from local and international suppliers. Your manager has asked for your assistance in an exciting new project to evaluate the potential outsourcing and offshoring of the manufacture of the steel cans used for the packaging BeanCo’s products for sale to retail supermarket chains. The current cans are manufactured in a plant owned by the company. This can manufacturing plant is coming to the end of its economic life and thus needs to be replaced. The current can manufacturing plant is 10km from the manufacturing plant. Its sources steel coil from steel manufacturers to cut and press into cans ready to be filled with the beans and legumes. Demand for cans is variable depending on the growing season and weather conditions that change crop yields (e.g. summer v winter, levels of rain fall). Your manager is leading a project to evaluate if the replacement plan should continue to be insourced or outsourced. The project scope also includes the potential to offshore the can manufacturing to large specialist can manufacturers in South East Asia. The final deliverable of this project is a recommendation to the CEO as to whether the new can manufacturing plant should be insourced or outsourced, onshored or offshored. Analyse three major considerations which would influence your recommendation and explain why.
 
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