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Consumerism
REAL REPORT
Remember our supply
chain purpose?
Raw materials are procured, converted
into product, packaged and delivered for
customer consumption. In order to make
this more effective, companies must
focus on the supply chain partnership
and the key drivers for performance
rewards and measurements. The
organizations that can keep this intrinsic
need in mind, and apply the principals
critical to the most basic functions
across the end-to-end big picture, are
destined to emerge at the top of their
respective market.
relationship down the line.
The new BPO provider must keep in
mind the bigger picture, and not get bogged
down in the details of the relationship today.
In an environment where the only certainty in
supply chain is that needs will change, this is
a very attractive proposition for many clients.
Implications for decision
makers
The emergence of multiple, credible
supply chain BPO providers creates more
options for an OEM facing the challenges
of getting products to market in a
competitive manner. Decisions regarding
the allocation of investments and
resources must be considered, particularly
in terms of what will drive sustainable value
within an organization.
The ability to incorporate world-class
supply chain capabilities into an organization
in an immediate, variable and confi gurable
manner can release funds and management
attention to be used for other critical
business functions.
By the nature of the discipline, effective
supply chain investments provide a roadmap
to cost optimizing and revenue facilitation.
Experience has shown that optimizing
management across the entire supply
chain can yield signifi cantly more savings
than a focus on isolated costs in functional
areas. Consideration of what you want from
a supply chain BPO relationship should
provide some clues on how you assess
the value proposition of potential partners.
An auction process may drive the lowest
price for a defi ned set of services, but can
you be sure that you have defi ned all of the
requirements for a supply chain partner?
If you assess only your current needs,
do you risk building a piecemeal supply
chain structure that lacks a cohesive vision?
Conversely, partners with the cohesive
vision, however, must also be capable of
meeting your needs today.
May 2010 Link 47