As waste management, water treatment and air pollution control processes become increasingly complex, managers have some difficult decisions to make, says local company Thuthuka Group. Among these decisions is whether to continue to manage their own waste disposal, treat their own water or clean their own air, or to outsource it to specialist opera- tors.
Most companies invest the bulk of their capital expenditure in their core business processes and com- petences, which directly has a strong effect on their revenue generation capacity and capability.
Capital requirements of noncore processes and competences, such as waste management, water treatment and air pollution control, are more often than not secondary.<bused jaw crusher for sale australia pricesr />
Given that capital in organisations is generally scarce and should earn a good return, such secondary process requirements do not feature high in the capital allocation priority catalogue. Similarly, with skills and management time allocation, a business normally deploys its expertise and management resources to making money and not on managing the by-products emanating from their core processes, which only absorb costs.<br zenith mobile crushing plant supplier cost/>
Further, environmental regul- ations have created significant financial and operating risks for organisa- tions who do not appropriately deal with waste, waste water and air pollutants. The implications for businesses can be dire and can even mean closure and liquidation with prison terms for the executives.
Overseeing this situation, where management has to expend valuable time, expert resources and alsvsi crusher used for sale crusher mining process sello invest capital in a part of the business that does not produce any income while incurring high risk and cost, is indeed a tough dilemma. This headache can, however, be contained and be confidently well controlled through outsourcing.
The decision to outsource waste handling, water treatment and air pollution control processes is made easier by the availability of specialist operators to whom non-core processes cazenith jaw crusher for sale in russia crusher mining process n be outsourced to. These companies employ appropriate specialists in these areas and are well informed, knowledgeable and up to date with the latest technologies to best deal with the respective action areas.
Risks are also reduced as they are managed in the appropriate manner by service agreements, where each risk is identified and addressed. Even the capital investment and the risk of plant obsolescence can be addressed through appropriate project finance structures.
Outsourcing noncore engineering processes offers several advantages to clients, including guaranteed quality, quantity and cost of treatment through agreed monitoring and control systems; preservation of investment capital; the assumption of operating and maintenance risks by the service provider; professionally managed environmental risks; significantly less management time, leading to increased managerial capa- city focussing on the core business operations; and streamlined administration and accounting.
Companies that opt to outsource parts of their operations should ensure that they use business partners with established records and who have the capabilities to meet the varied engineering and operational requirements.
Thuthuka Group is a multidisciplinary engineering business, focused on the process, industrial water, hazardous waste and air pollution control sectors of the market. Major industrial target markets are the mining, chemicals, metal processing, pulp and paper, and petrochemicals industries. Thuthuka Group provides and structures project finance for suitable projects.
Source: http://www.forherandforhim.com/blog/2013/01/outsourcing-non-core-process-proves-advantageous/
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