Final answer:
A company would decide to outsource or in-source a supply chain function during the design phase, where costs and benefits of outsourcing and offshoring are considered, alongside the potential impact on labor rights and supply chain sustainability.
Step-by-step explanation:
A company would decide whether to outsource or perform a supply chain function in-house during the design phase. This is the stage where the overall framework of how a product will be created is assessed and established. In this phase, companies deliberate on key decisions such as locating suppliers, creating manufacturing systems, and determining whether to handle certain operations internally or to contract them out to outside firms. As the competitive global market offers many opportunities for cost savings through outsourcing and offshoring, a company needs to carefully consider these options during the design phase to set up efficient and financially viable operations. Utilizing foreign labor markets can be beneficial due to lower wages and the impact of trade agreements that facilitate international commerce. However, it's also important for companies to contemplate the implications of these decisions on labor rights and the long-term feasibility of their supply chain.