Some people have a negative impression of outsourcing, and feel that outsourcing will cause more and more people to lose their jobs. Others thinks there is a problem of quality control in outsourcing, or they fear leaking company of secrets.
Paul Carpenter owns a company that produces and sells headache sprays. This spray is made from pepper and is quite effective in suppressing headaches.
This peculiar invention was inspired by Carpenter’s grandfather. When he had a headache, he always drank bourbon with chili, so Carpenter began to study the pepper and found that the pepper relieved the headache. So he decided to open a new headache medicine company.
Carpenter originally operated a disposable camera company. After selling the camera company in 2005, he started to produce his headache spray. In less than two years, they quickly reached more than 200 million in turnover, but his company still has only two full-time employees, one is the counter staff, and the other is the accountant.
There are so many tasks in a company, how do they manage with only three employees? Carpenter said: “The answer is simple, everything is outsourced.”
He has outsourced the company’s outsourcing work. He has a number of partners in North America, including manufacturing and warehousing to companies in Pennsylvania, and packaging outsourced to companies in Connecticut. The bottle is outsourced to Canadian manufacturers. He hired business representatives in New Jersey and New York to develop its business map. Logistics is handed over to national transportation companies. Marketing is handed over to marketing consultants in Washington.
Outsourcing helps Carpenter reduce the cost of each line. Although sometimes managing outsourcing companies requires wisdom and time, by outsourcing, Carbent can reduce many risks and costs.
Of course the cooperation with all these vendors are not always perfect, but overall Carpenter says HE is feeling great about not running a huge company with all these people under one roof. And why would anyone start a company if not to improve their own life?
