Benefits of Outsourcing in Supply Chain Management
BENEFITS OF OUTSOURCING IN SUPPLY CHAIN MANAGEMENT
written by: Lauren Mercer
MKTG 3130 – Final Term Paper
TABLE OF CONTENTS
I. Supply Chain Management and Outsourcing ………………………………………… 2
II. What is Outsourcing …………………………………………………………………. 2
III. Important Processes Related to Outsourcing..………………………………………. 3
IV. Advantages of Outsourcing …………………………………………………………. 4
V. Disadvantages of Outsourcing ………………………………………………………. 9
VI. Current Changes in Outsourcing …………………………………………………... 11
VII. Outsourcing Works …………………………………..…………………………… 13
I. Supply Chain Management and Outsourcing Supply chain management is a horizontal process that crosses the company and spans countries in scope. Time, distance and the nuances of operating in a vertical organization are challenges. Therefore identifying needs and problems requires that the process itself must be addressed and how outsourcing improves the overall process. Outsourcing focuses on business process outsourcing. Supply chain outsourcing will be divided along the lines of key needs and focuses on business process outsourcing (BPO). Supply chain BPO will be an active part as firms move to compress time and increase inventory velocity. Supply chain outsourcing can help an organization build a responsive, integrated supply chain that operates in real-time with suppliers, partners and customers, a highly complex proposition that requires a unique combination of consulting, technology and services skills. Supply Chain Management offers an organization the opportunity to outsource supply chain while continuing to focus on its innovations and core competencies. The outsourcing transformation will lead to competitive advantages and to increased company and shareholder value.
II. What Is Outsourcing? The term outsourcing did not enter the English-speaking lexicon until the 1980s and has since become a popular political topic of debate, especially during election years. Although a precise definition of the term
written by: Lauren Mercer
MKTG 3130 – Final Term Paper
TABLE OF CONTENTS
I. Supply Chain Management and Outsourcing ………………………………………… 2
II. What is Outsourcing …………………………………………………………………. 2
III. Important Processes Related to Outsourcing..………………………………………. 3
IV. Advantages of Outsourcing …………………………………………………………. 4
V. Disadvantages of Outsourcing ………………………………………………………. 9
VI. Current Changes in Outsourcing …………………………………………………... 11
VII. Outsourcing Works …………………………………..…………………………… 13
I. Supply Chain Management and Outsourcing Supply chain management is a horizontal process that crosses the company and spans countries in scope. Time, distance and the nuances of operating in a vertical organization are challenges. Therefore identifying needs and problems requires that the process itself must be addressed and how outsourcing improves the overall process. Outsourcing focuses on business process outsourcing. Supply chain outsourcing will be divided along the lines of key needs and focuses on business process outsourcing (BPO). Supply chain BPO will be an active part as firms move to compress time and increase inventory velocity. Supply chain outsourcing can help an organization build a responsive, integrated supply chain that operates in real-time with suppliers, partners and customers, a highly complex proposition that requires a unique combination of consulting, technology and services skills. Supply Chain Management offers an organization the opportunity to outsource supply chain while continuing to focus on its innovations and core competencies. The outsourcing transformation will lead to competitive advantages and to increased company and shareholder value.
II. What Is Outsourcing? The term outsourcing did not enter the English-speaking lexicon until the 1980s and has since become a popular political topic of debate, especially during election years. Although a precise definition of the term
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