Question: Discuss the advantages and disadvantages of Boohoo producing inhouse vs outsourcing.

Expert answer

There are both advantages and disadvantages to Boohoo starting in-house production at a new factory in Leicester, UK. Some of the advantages include better working conditions for employees and more control over the manufacturing process. However, there are also some drawbacks, such as higher costs and less flexibility. Overall, it is important to consider both the pros and cons before making a decision about whether or not to open more factories in the UK.

One of the main advantages of Boohoo starting in-house production is that it can help to improve working conditions for employees. In the past, there have been reports of poor working conditions in Boohoo's outsourced supply chain. By producing items in-house, Boohoo will be able to better monitor and improve conditions for workers. This could help to reduce the risk of employee exploitation and improve working standards overall.

However, there are also some disadvantages to in-house production. One of the main drawbacks is that it can be more expensive than outsourcing. In-house production requires a significant investment in machinery and other resources. There may also be higher costs associated with training employees and ensuring quality control. Additionally, in-house production can be less flexible than outsourcing. If demand for products changes, it can be difficult to adjust production levels quickly.

Overall, there are both advantages and disadvantages to Boohoo starting in-house production at a new factory in Leicester, UK. It is important to consider all of the pros and cons before making a decision about whether or not to open more factories in the UK.