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Outsourcing supply chain an important task, analyst says

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Outsourcing supply chain an important task, analyst says

Tuesday, 01/7/2008 05:13
Outsourcing supply chain management is an increasing choice for companies, despite the economic downturn currently facing many businesses, it has been reported.

However, a report carried in Supply Chain Revue found that not the decision to outsource aspects of a supply chain could be more effective than simply outsourcing the entire process.

The report suggests that in fact, by taking a look at the areas in which a business has strong management of the chain and where its work is weaker, the company can be better placed to outsource only the parts that require the most attention from the business.

"Before making a decision on how to best implement a supply chain management process, companies should evaluate their own cultural alignment, core competencies and business capabilities," one analyst told Supply Chain Review.

The outsourcing of supply chains can help a company make their chain green, or could save the company money by offering a fresh pair of eyes on a system that may not have been adapted for some years.

With the rising cost in raw materials and fuel, it is more important than ever to take a look at a supply chain to see if there are any ways in which it can be improved.

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