Outsourcing of Supply Chain
When companies analyze and examine their core competencies, they realize that outsourcing parts or all of a supply chain can be advantageous. With marketplace improvements around information systems, cost and quality of global manufacturing and product design capabilities, companies are gaining advantage by outsourcing their supply chain.
There can be significant economic benefits from outsourcing of your supply chain operation. However, the absence of a right system, process or organizational management structure can cause risk to success. In an outsourcing environment, companies need to put more controls and systems in place to compensate for the fact that the supply chain capabilities no longer reside onsite. In an outsourced supply chain environment, the need for information controls and excellence becomes more important.
Read my previous post titled “The Evolution of Supply Chain Management” to get an idea about the evolution of supply chain management.
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