Outsourcing Supply chain management -8 issues
- Topics:
- Logistics Planning
- Tags:
- Business Operations,
- It Operations,
- LTD Management,
- Outsourcing,
- Outsourcing & Subcontracting,
- Supply Chain
- Source:
- LTD Management
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Overview: Outsourcing is done for various reasons. The driver can be generating cost reductions and downsizing; this has been a traditional reason for outsourcing. But there are others, such as gaining capabilities that are not available internally, implementing lean programs, streamlining operations, strategically positioning the company, or improving or adding capabilities to gain competitive advantage. Outsourcing a function versus a process can change the type of service provider that should be evaluated. A 3PL is often used with functions, such as inbound transportation and related activities. A 4PL may be the better choice with managing a process, which requires breadth of logistics skill sets. Also determine if the outsourcing and the desired results require collaboration with any of the company trading partners. This is important to defining the needs, identifying partners and designing the needed program. Successful outsourcing takes effort. Distinguish theory from reality.
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Format: HTML | Date: Apr 2003 | Pages: 1
