“ In the face of wild swings in consumer demand , trade wars , tariffs , and lockdowns , supply chains bent and frequently broke ”
PROCUREMENT
“ In the face of wild swings in consumer demand , trade wars , tariffs , and lockdowns , supply chains bent and frequently broke ”
JOHN PIATEK GEP VICE PRESIDENT AND THOUGHT LEADERSHIP COUNCIL CHAIRMAN
Procurement teams now race to find skilled , third-party vendors to provide services they can neither afford nor prioritise . “ Outsourcing of S2C can give companies access to expertise , capabilities , and scale they may not have in-house ,” said Iliana Filyanova , Partner for McKinsey ’ s Manufacturing & Supply Chain . For example , expert outside firms can analyse market conditions , supply specialised goods such as semiconductors or uniquely designed parts , and help develop a strong IT infrastructure .
To be clear , if your team can skillfully outsource , a whole new world opens up : you can rapidly adjust to market conditions , scale up when demand spikes , and scale down when dips hit .
Why Outsource ? First , you can cut costs . Suppliers in Southeast Asia and other low-cost countries can provide large amounts of materials and products at excellent prices without the political backlash that often accompanies offshoring . But outsourcing has several advantages . When you get specialists on board , you can shorten development times , hire additional staff without having to train them , and digitise your procurement systems thanks to IT experts .
Additional Benefits
• Increases focus on core tasks
• Provides staff more time to fulfil their priorities
• Supplies next-gen technology expertise
• Reduces operational costs
• Helps prevent duplicate payments
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