Advantages of outsourcing in terms of preparing girls’ and boys’ toys, toys in local languages, toys for different age ranges, packaging, effecting savings on damages/transport, responding fast to customers’ requests, etc.

Answer:

Outsourcing means to obtain fully finished or semi-finished goods or services from external firms. The benefits of outsourcing in the toys industry are as follows:

1. The local perspective or preference of the children in the region can be achieved through outsourcing. Giving a more personal touch to the toys for both boys and girls.
2. Outsourcing helps to manufacture toys which use local languages. For example, manufacturing toys in India would use Hindi language, while a Chinese company would manufacture toys having Chinese language.
3. In terms of age ranges, the local perspective plays a vital role in making toys relatable to specific ages.
4. Packaging by outsourced agencies saves costs and makes the toys more attractive based on regional color choices or seasons or festivals. For example, a special Christmas packaging for toys in Western countries, while a Diwali themed packaging for Indian customers.
5. Outsourcing of toys manufacturing and packages helps reduce costs and reduce the danger of damage to the packaging.
6. Response to customer is increased as the outsourced companies are physically closer to the consumers and gather information earlier than the parent company, with respect to changing preferences and customer requirements.