Equips suppliers with skills and knowledge to determine the costs and benefits of using overtime and/or subcontracting to complete an order in a certain amount of time.
In addition to the labor risks associated with using overtime and unauthorized subcontracting to complete orders (i.e., increased risk for forced labor, child labor, and other labor violations), these tactics are often costly and detrimental to suppliers’ bottom lines. Many suppliers use overtime hours and subcontracting without fully understanding whether it is financially sustainable to do so. The Subcontracting and Overtime Cost-Benefit Analysis tools help suppliers determine the costs and benefits of using these tactics to complete specific orders. By increasing their understanding and awareness of how this affects different costing factors and overall profit margins, suppliers will have the information they need to make more financially sustainable choices for their business—eventually reducing their reliance on these risky behaviors.
