Outsourcing Statistics - What You Need to Know
Collecting and using outsourcing statistics can give your organization a better picture of business operations and how your company should respond to change. Using statistical analysis, you can improve your decision making and determine where you may need to make changes next.
In this article, you can read a short overview of how statistics work and what types of statistics you can use in outsourcing, which is vital when your organization is outsourcing core areas of its business operations to other companies.
How Do You Collect Outsourcing Statistics?
Outsourcing statistics can help your organization plan and manage the outsourcing involved in a particular area of your business or in the entire business.
By collecting data, you can gain a much greater understanding of what is actually happening inside your organization and how your business can address it and appropriately manage your response.
Software can make collecting statistics a lot easier, as can having a dedicated team that understands statistical collection and analysis.
How Do Outsourcing Statistics Work?
Outsourcing statistics are data collected through the outsourcing process. The type of data gathered may depend a great deal on the area of your business that you decide to outsource.
For instance, here are some types of data businesses might use in outsourcing:
- Production statistics: Mass production, for instance, has a lot of different stats that could be useful for manufacturing. Production rates, quality measurements, how long it takes to complete orders, etc. Lean manufacturing practices require consistent data collection and analysis to improve production processes.
- Distribution statistics: How long it takes to ship a product, how many units are lost in transit, etc.
- Marketing statistics: How many people interact with your marketing, how many clicks on an online ad, etc.
- Sales statistics: How many items are sold in a specified time period, how many prospects and leads to connect with to cause one sale, etc.
For every area of outsourcing, there are stats that can be collected and used to measure how successful an area of business is and what might be improved upon. Once stats are collected, there are different ways businesses can use them. Without analysis, stats aren't very useful---they're just data. It's when organizations start looking for trends and patterns that statistics become useful.
Example types of analytics businesses can use include:
- Predictive analytics: Businesses can look at past collected data to find trends and predict the next batch of data.
- Prescriptive analytics: Looking at data to figure out what the business should do next.
- Descriptive analytics: Looking back at the past, you can describe what the data is showing to get an overall picture of the data.
- Diagnostic analytics: Figuring out why something happened like it did.
Until you look at the data, you may not know which method to use. There are many different types of statistical analysis, so it isn't always clear immediately how to apply your data.
Benefits of Collecting Outsourcing Statistics
For businesses, it's nearly impossible sometimes to know what to do. You can't predict the future directly so the next best thing is to try and figure out what might happen and how you can learn from the past. If we assume that most things operate in a predictable fashion and aren't random, then we can also assume that data can be mined for trends and ideas about what the future might do.
One of the worst things for business and one of the biggest "enemies" of success, if you will, is uncertainty. Statistics are collected with the primary purpose of eliminating or reducing uncertainty in business operations. As our understanding of how to use data gets better, we can get much better at predicting the future for our businesses. It's not a perfect science, but it's often a great deal better than flipping a coin to make your decisions.
Getting Started with Collecting Statistics
Collecting and using outsourcing statistics can help businesses navigate uncertainty and determine how they should make decisions about business areas such as marketing, sales, production, and logistics.
Your business has enough on its plate. Outsource what makes sense for your business, choose a world-class SaaS technology solution and focus on what's important: your clients. Call 1-866-879-8647 or fill out an online form to request a no-obligation quote from an 8x8 product specialist.