For the past few decades, outsourcing has allowed companies to offload some of their non-core business processes to reliable vendors in order to gain cost advantages, increase efficiencies, reduce capital investment, and access resources with higher skills and more advanced technologies. Back office outsourcing has traditionally included payroll processing, data entry, call centers, IT, and even accounting functions. Manufacturing supply chain and outsourcing has taken production to China and other low-cost manufacturing destinations worldwide.
Supply Chain Management (SCM) functions have so far resisted this pull, remaining a dedicated department within most companies. As SCM networks increase in complexity and expand further and faster across the globe, global brands may find more reason to consider outsourcing their supply chain management. Enter Supply Chain as a Service (SCaaS).
How SCaaS Works
Supply Chain as a Service refers to the outsourcing of supply chain management functions, allowing companies to zero in with greater detail on their core missions. Typical services include inventory management, purchasing, sourcing, manufacturing solutions, quality, pricing, logistics, and warehousing. These services can be customized according to a company’s unique needs, as there is never a “one size fits all” approach to supply chain management. SCaaS can maintain growth as a company grows. Both a successful startup company, as well as an experienced manufacturer, can maximize their organizational efficiencies and streamline their costs without building and maintaining their own internal supply chain networks.
The case for SCaaS can most easily be made for those companies whose mission is to deliver unique high-quality products for consumer (B2C) and commercial (B2B) use. Today’s speed of product innovation and development can be overwhelming no matter if a company is established, or a startup. Bringing a new product to market often means navigating new suppliers, and understanding manufacturing supply chain processes with limited experience and contacts.
When it comes to overseas manufacturing, the only tangible way to reliably manufacture quality products is to have your own trusted representation on the ground monitoring production, and assuring quality. Many supply chain networks fall short in this regard, often relegating quality assurance to a bet based on previous performance, or simply on the hope that nothing will go wrong.
Optimizing a Growing Need
When the core mission is sales and developing new products, most companies will admit to falling short of their supply chain goals in at least a couple of operational areas. As spread out and dynamic as supply chains are these days, none is perfect. There are always opportunities to close service gaps, improve efficiencies, and to overall make improvements to the supply chain. The answer for some may be Supply Chain as a Service, the outsourcing of all or part of the supply chain management functions of your operation.
Contact ITI Manufacturing to learn more about the offshore supply chain services we offer that can close those gaps and increase the quality of your total supply chain experience. ITI Manufacturing is your manufacturing supply chain expert, connect with us toll free at 888-574-6923.