Every stage of the chain can potentially be carried out by a third party.
The emergence of "as a service" platforms and providers adds more complexity to the supply chain outsourcing discussion. It is no longer just about logistics outsourcing. Now manufacturing, planning, warehousing and more can be obtained as a service. Organizations must decide what components they will outsource and what they will provide in-house.
Supply chain leaders often outsource for the wrong reasons, as a result of not following a sound outsourcing strategy. In order to be future-ready, organizations should develop an outsourcing strategy for their supply chains that establishes a balance between the importance of cost, service delivery, risk mitigation and longevity of relationship. This will allow a build/retain discussion resulting in better outcomes.
Learn what it takes to be an organization with an ‘outside in’ operating model empowered by as-a-service platforms, in our paper below.
The supply chain of the future will successfully evaluate external platforms and 5PL providers to understand which components of their network they may outsource, or offer as service, and the level of effort required to manage it. They will develop the talent that provides the skills required to manage their external partners and evaluate having a cloud-based information capability, which will allow all external parties operating on their behalf to provide real-time data.
Supply chains are becoming considerably more complex, as manufacturers connect with existing and new players to access or deliver as-a-service. In this platform-based world, the supply chain will become increasingly modular, with organizations constantly buying from and switching services between multiple players. Managing such complexity calls for new capabilities:
The rise of supply chain as-a-service means that every stage of the chain can potentially be carried out by a third party, from production to last-mile delivery.
The biggest limitation for supply chains is no longer technologies and what they can do, but rather the imagination of the people who leverage them. As enterprises around the world are facing a perfect storm of change, today’s supply chain leaders must transform business models, organizational structures and operations to thrive today and in the future. Learn more about the future of supply chain.