Smooth value creation and supply chain processes are an important success factor in companies. However, supply chain activities are also extensive and associated with high costs. Especially in times of a shortage of skilled workers, the complex tasks of supply chain management therefore present companies with major challenges.
These are the reasons for outsourcing supply chain processes
Cost savings
It is often more cost-effective to outsource the supply chain to a reliable third party than to manage it yourself. Starting with lower warehousing costs, outsourcing value-added and delivery processes can save you money above all in personnel costs (incl. non-wage labor costs) and costs for premises and the necessary equipment.
Risk mitigation
If the supply chain is outsourced to an overseas partner, the savings may be higher in the short term. But shorter supply chains are much more flexible and stable in the long term, as they respond more quickly to trends and thus save costs in the longer term.
Increase of own flexibility and reactivity
Unforeseen or unpredictable tasks can significantly limit the routine, work that you can do regularly and plan for the long term. In most cases, you do not have the resources to solve all the problems in a reasonable time.
Since tasks and processes can also be outsourced at short notice, you quickly gain resources and thus a high degree of flexibility with an outsourcing partner.
Value enhancement of own products / services
External partners have competencies, solutions and expertise that your company might need several years and large investments to build.
However, you not only benefit from the planning and expertise brought in; for its operational excellence, a specialized service provider uses over equipment and tools that help to increase the efficiency and productivity of your supply chain processes.
So by contracting specialists, you save your own resources in terms of personnel, infrastructure and technology and can instead deploy them more efficiently at key internal points such as research, development and optimization of your own products and services.
Strengthening your own core competence
Activities outside your core competencies are often inefficient and can lead to time delays and fatal losses in your core business. By outsourcing individual tasks or all task groups along the supply chain to external service providers, you gain more time to focus on developing your core business.
Conclusion
Customer satisfaction is the key to a sustainable, long-term business, and this can only be achieved if the value chains function optimally. Outsourcing such processes and process chains to a specialized partner helps minimize the risk of an inefficient value chain, which can seriously affect customer relationships and profitability.
Better equipped with human resources, technologies and the effective processes, third-party providers can ensure smooth and efficient operation of all supply chain processes in the long run and better adapt to changing conditions.
The resources and expertise of outsourcing partners are especially valuable when you need to scale your production to meet fluctuating demand in the sales market.
Are you looking for a secure outsourcing partner for the production of your assemblies?
Benefit now from our many years of experience and economic mindset as a 1-tier supplier to OEMs with global market leadership.