As many companies step back and examine their core competencies some realize that outsourcing parts or all of a supply chain can be advantageous. With marketplace improvements around (1) information mediums and systems (2) cost and quality of global manufacturing and distribution and (3) product design capabilities companies are gaining additional synergies by outsourcing all or parts of their supply chain.
There can be significant economic benefits from outsourcing all or part of your supply chain operation, but without the right systems, processes or organizational management structure the risk to success can increase to frightening levels. In an outsource-heavy 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 from the