(1) Deliver the absolute lowest possible cost to the customer. (2) Deliver the absolute best possible service to the customer. (3) Deliver the absolute highest possible level of service to the customer.
Supply chain managers outsource the logistics of their companies’ supply chains. As a result, they’re no longer in charge of the logistics for their companies’ products. Instead, they’re in charge of all the logistics for these products for companies. In order to meet these goals, supply chain managers must outsource the entire logistics of their supply chains on multiple levels.
The first level is to find ways to increase the amount of value that companies can produce for their customers. The second level is to focus on the customer’s needs so that the company can grow and deliver greater value for customers.
Some companies are working on the third level, but there’s a lot of disagreement about how they work.
The third level is to actually outsource the logistics of their supply chains. A supply chain manager that hires suppliers in an outsourced way (not using a third party supplier) is still a supply chain manager. A supply chain manager that hires third party suppliers is still a supply chain manager. It’s not as cut and dried as it seems. In fact, it’s more a matter of finding ways to make it easier for a company to outsource their supply chains than outsource themselves.
Outsourcing does make it easier to use a third-party supplier, but at a cost. Outsourcing your logistics is a major financial risk because you need to have a dedicated team of people in place to manage the logistics. You also need an infrastructure to handle the logistics because, in addition to the supply chain manager, you also need people to run the logistics, like the logistics team itself.
Outsourcing your logistics is a huge investment. The biggest reason for outsourcing logistics is to reduce your risk. The reason is that you are less likely to end up in a situation where your company is caught in a supply chain crisis and unable to properly manage the whole chain. The second reason is that sometimes you may only need a part of your supply chain. For example, let’s say that you’re manufacturing a product that requires the use of a lot of different parts.
A third reason is that you won’t have to manage the whole chain yourself if you can run the whole thing yourself. The logistics team may only need a small portion of it. In this case, your company will be able to run the entire line of parts yourself and prevent the whole chain of supply from getting disrupted.
Supply chain management is one of those things that seems to have taken on a life of its own in the past few years. As you would imagine, the whole thing is still new to most people. It is so complicated that you have to hire a whole new team of people to manage it. Even so, there are a lot of different ways that companies can handle this, and each has advantages and disadvantages.
I’m not talking about the whole “new” thing. The supply chain is still very much a human-powered affair, and there are plenty of industries that are “human-powered” and can be scaled down to that scale. There are very few, if any, industries that don’t have at least one human on staff. The problem is that human-powered supply chains can be very, very costly to run.