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Wednesday, March 17, 2010

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Posted: Monday, September 21, 2009, 9:28AM

Experts warn firms losing sight of operations due to supply chain outsourcing

Due to an increase in the outsourcing of supply chain processes and systems, organisations are losing visibility at a time when agility and responsiveness are a must for the customer-driven supply chain, experts warn.

"Manufacturing and demand-supply networks are continuing to grow in complexity. Because of this complexity, it has become difficult for companies to stay informed and in control of every stage of the supply chain lifecycle," said Viktoriya Sadlovska, Aberdeen Group analyst.

"At the same time, these organisations are working to move towards a more customer-driven supply chain. Therefore it is critical for companies to better align their outsourcing and customer-service efforts to attain agility and enable better responsiveness to minimise supply chain risk."

According to a newly published Aberdeen Group report, a centralised supply chain organisation, with globally defined strategy is an important element for managing today`s networks with a high degree of process outsourcing. It notes that best-in-class companies have repeatedly shown to have adopted this capability.

Andre Pino, chief marketing officer, Acsis, said: "As companies outsource more and more of their supply demand-networks, they lose the visibility and control that they once had when the operations were within their four walls.

"However, new automated data collection and collaboration technologies can provide visibility and restore the management control over their demand-supply networks and minimise disruptions and operational errors."

Procurement Tags - Outsourcing, Supply Chain Management


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