The companies are always under pressure to change and improve their supply chain management. The supply chain dynamics has become complex with globalization. The turbulent market condition is forcing the companies to change the way they manage their logistic operation. They are forced to change the way they organize and operate their supply chain units of the business. To address these complexities, the companies need to bring in more specializations in all the area of supply chain management process.
A properly applied BPO model can address the complexity that a supply chain manager faces. Over ten years, BPO has transformed many businesses and is thriving on the same market pressures and conditions that are affecting the supply chain. Many executives have started realizing that outsourcing supply chain will help them to tackle many complex and multiple pressures and deliver them the desired outcome. By outsourcing, the companies will be able to achieve 30% reduction in operating costs and improve their customer delivery services. In short, BPO model will help the companies to achieve perfect process synchronization, collaboration and client independence throughout its supply chain.
Supply chain orchestration to achieve optimal solution
Integration of components like process, resources and technology will help the companies to achieve optimal solutions for end to end process in supply chain and in turn will reduce the operational cost. Companies now need not compromise on the quality and can provide best customer services consistently. Integration of core components will benefit the companies in the areas of process excellence, IT, visibility and sustainability.
In the area of process excellence, the BPO provider ensures that all the processes are standardized and stable. They deploy global business models for standardizing the processes. In the area of IT, the service provider deploy latest technologies like cloud computing, SaaS, business intelligence systems to maximize the ROI.
Outsourcing service provider will enable the companies to view all the transactions that include, transactions between third party systems, banks, rails, roads, sea and air operators and regulators through a cloud based solution. In the area of sustainability, the service provider helps the companies to address other issues like scarce resources and to integrate new key performance indicators like CO2 foot prints and water consumption.
Supply Chain Collaboration to reduce cost
Outsourcing supply chain process will help the companies to deal with issues like out-of-stock and increasing operational costs by collaborating supply chain activities of similar companies. The service provider will provide a platform for the companies to combine their supply chain activities with similar companies or even with their competitors in way that all are benefitted equally.
Independence from clients and logistics provider
Independence from the clients and logistics provider is necessary in timely delivery of collaborative services. Outsourcing also makes the clients independent from the internal and external hindrances that block them from achieving efficiency in their supply chain management. Further independence from clients and logistics provider will help the BPO providers to focus on service and to deliver the agreed outcome.