The documentation of all business events resulting from the operation is a necessary activity, thanks to which, in addition to matters arising from settlements with, for example, the Tax Office, the producer has the necessary information on the costs and profitability of the business in question.
The need to reduce production costs is an important driver for the development of services in the market. So-called ‘outsourcing’ is the use of external services, outsourced by farms looking for optimal solutions to improve management. The aim of “outsourcing” is to reduce operating costs and to better respond to changing market requirements and to optimise investments. “Outsourcing” aims to identify those tasks in the enterprise that an external entity would do better and cheaper. It allows companies to focus on the most important areas of business for the farm. Reducing operating costs improves profitability. The use of external services can also influence: greater price flexibility, finding cheaper sources of finance, and pursuing new ventures that will increase the competitiveness of the farm.
The advantages of outsourcing are:
- time savings allowing the manager to focus on the core activities of the farm. A specialised supplier usually operates more efficiently, achieves better results and generates lower costs,
- cost reduction – allows companies to replace fixed costs with variable costs, spread over a longer period, primarily for equipment and machinery,
- reducing the administrative costs of employee management,
- improving quality control and transferring responsibility to external parties,
- correctness of cash flow,
- better IT services.