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Don't Let Outsourcing Break Your Supply Chain

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Outsourcing

 

Businesses have been outsourcing operations since the late 1980s mainly in a bid to tap into a global marketplace and combat rising costs. Outsourcing was a cornerstone for businesses to scale effectively, launch new products seamlessly, and manage operations efficiently. Over the last few decades, outsourcing has morphed into an essential way for businesses to leverage existing expertise without having to invest significant resources into peripheral disciplines.

However, this branching out of business operations has added complexities to business structures, particularly supply chains. As outsourcing has evolved in tandem with businesses, supply chains have graduated from being simple, linear connections between businesses and suppliers. Today’s supply chains constitute an interconnected network that spans across functions, departments, and continents.

In this white paper we will discuss:

  • the impact and benefits of outsourcing
  • the indirect and direct risks of outsourcing with third party contractors
  • how to mitigate risks with contractor management