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What is outsourcing Supply Chain?

Nature of outsourcing supply chain management

asked by Anonymous

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Tags:  business  management

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Outsourcing the supply chain just means that you hire other firms to handle the supply chain of your business. The "supply chain" is just the flow of materials and products through your company. a supply chain includes all of the following: stocking components, storing them, shipping products etc.

7 votes

Outsourcing the supply chain means that you are prepared to pay others a margin to perform a holistic end to end operation that is crucial to your companys success and in an area where you have lots of internal competence and interdependencies to deal with

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posted by Anonymous  
5 votes

Outsourcing is the practice of using people outside your company that are not employees. It can help reduce costs, and to help improve the quality of your business. One example would be that if you need things shipped you would use a trucking company instead of buying your own trucks.

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posted by diane (108)
5 votes

Outsourcing your supply chain is when you hand over logistical operations to another company. This can include outsourcing running of a warehouse, deliveries, and part ordering.

4 votes

Supply chain outsourcing means contacting another company to provide supply chain services that would otherwise be performed by in-house employees. Reasons are:- Reduce costs, cycle time Improve inventory turns

3 votes

When a company has another company overseas that is producing their products for cheaper than it would cost in the United States.

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posted by mpelle (302)
  • "supply chain" is more broad than just the production of products... it includes the whole process that materials go through, from raw material extraction, all the way to the delivery of your product to your final customers. Outsourcing just means that you let other companies perform these processes.
    posted by elsewhen (613)
2 votes

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