PowerPoint presentation in which the notion of subcontracting, its advantages and disatvantages and its effects are discovered.

1. SUBCONTRACTING
R E A L I Z E D B Y :
H A M Z A C H A H B O U N
M E H D I S O G H E I R
S U P E R V I S E D B Y :
M R . K H A L I D B E N A M A R A

2. PLAN:
• Definition.
• Types of Subcontracting.
• Advantages of Subcontracting.
• Disadvantages of Subcontracting.
• Necessary conditions to establish a
Subcontracting relationship.
• Based on what ? You select the Subcontractor.
• Conclusion.

3. DEFINITION:
A business practice where main contractor hires
additional individuals or companies called
subcontractors to help complete a project.

4. TYPES OF SUBCONTRACTING
• Subcontracting of specialty:
The company does not have the skills or equipment needed to
manufacture the product.

5. • Subcontracting of capacity:
Sometimes, the company find itself unable to
meet the « growing » demand of its customers
and uses subcontracting to overcome this
difficulty.

6. • Strategic Subcontracting :
When a company wishes to test a market before
starting in it, or evaluating a business before
buying it.

7. THE BENEFITS OF SUBCONTRACTING:
• Better use of labors and therefore of
specialization
• Better control of quality, cost and
manufacturing periods
• Increasing the production volume and the
flexibility of all processes
• Reducing risks of technical failures
• Maintain customer loyalty

8. DISADVANTAGES OF SUBCONTRACTING:
• Strong dependency on the subcontractor .
• The risk of lacking coordination and the sharing
of ideas (savoir-faire) between partners.
• The Subcontractor is not necessarily motivated
to improve the quality of the product.
• The company face the consequences in case of
the failure of the subcontractor.

9. NECESSARY CONDITIONS TO ESTABLISH A
SUBCONTRACTING RELATIONSHIP:
• it is essential that the sponsoring company has
all the necessary information's regarding the
potential subcontractors. It must ensure that
they have the necessary capacities to carry out
the all the tasks.
• The ordering company must verify that the price
of the subcontractor is lower than the cost of
the production and that it has all the necessary
technologies.

10. • It must also ensure that the
subcontractor is able to carry out the
production in accordance with the
deadlines and quantities requested.
• The ordering company must also protect
its industrial property rights as a creator.

11. SELECTING A SUBCONTRACTOR, BASED ON
WHAT?
• The quality
• The cost
• Delivery time

12. CONCLUSION
Businesses often require subcontractors for assistance on
large, specialized or diversified projects when they do not
have the resources on hand or need additional expertise.
hiring an expert to work on one or more short-term projects
can be beneficial in terms of cost, quality and efficiency.
Although maintaining chemistry between companies may be a
crucial factor. Subcontracting is a very useful tool to help
reach a higher state in the market.