What was the primary benefit Local Motors gained from outsourcing manufacturing and design?
A)They rapidly increased the number of employees working for the company.
B)They raised money quickly to fund their development.
C)They saved labor costs while improving efficiency.
D)They were able to employ 3D design software.

Question

Quizplus · Accepted Answer

By outsourcing both manufacturing and design, Local Motors was able to save on labor costs while improving efficiency. This allowed them to produce their products at a lower cost and with a faster turnaround time than if they had kept these processes in-house.

Answer: D
 While outsourcing design was a key factor in Local Motors' success, it was not the primary benefit. Similarly, employing 3D design software was a helpful tool, but not the primary reason for outsourcing.

What Was the Primary Benefit Local Motors Gained from Outsourcing