Outsourcing/partnerships

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Outsourcing/partnerships

This Business Process Integration not only involves the outsourcing of the procurement of materials and components, but also the outsourcing of services that are usually present in house. The premise of this trend is that the company will focus on its core competencies and outsource everything else. This trend is often found in logistics, where the provision of transport, warehousing, and inventory control is usually subcontracted to specialists or logistics partners. In order to supervise and control this system of partners and suppliers, there is a need for central and local participation, the strategic decision are taken at the centre level while the monitoring and control of supplier performance and day-to-day interaction with logistics partners are best managed at the local level.

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