What are the disadvantages of using delegated sourcing strategies?
Disadvantages of using delegated sourcing:
a. Can be a complicated relationship to manage an outsourcer as an example could be just other ‘middle man’
b. Strategic control over purchasing task could be lost
c. Confidentiality of information breached
In 2005 year, Gate Gourmet an outsourcer, which provided British Airways along with in-flight meals, dismissed eight hundred staff over an unofficial strike. That industrial action caused BA to cancel flights due to a lack of food. Passengers were being specified food bags and vouchers to acquire food before boarding flights, nevertheless queues meant several check-into desks had to be closed. That disruption at the time cost BA an approximate £40 million.