Eight Best Practices in Supply Chain Outsourcing - Slide 2

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Align the outsourcing strategy with the corporate and supply chain strategy.

Companies that compete by offering personalized, high-touch customer service need outsourcing partners that have flexible and agile service delivery models. Conversely, companies or supply chain segments within companies that compete on price need lean, operationally efficient and low-cost partners. Because most companies operate several supply chains, it's essential to understand each one before selecting an outsourcing partner.

Surviving as a 21st-century supply chain requires operating as a demand-driven value network, according to Gartner, Inc. Orchestrating these value networks means supply chain executives must understand and adopt best practices in selecting, onboarding and managing supply chain outsourcing partners. Therefore, Gartner has identified eight best practices in supply chain outsourcing.

"Supply chain executives are starting to apply more comprehensive analysis to outsourcing decisions, such as factoring in agility, responsiveness and cost," said Michael Dominy, research director at Gartner. "Companies must focus on what they can do best and appropriately outsource activities that value chain partners can do better. This often means using one or more logistics, manufacturing or business process outsourcing (BPO) partners, instead of performing these supply chain activities themselves."

"Successful supply chain executives must be able to manage outsourcing partners. That's what we hear from our supply chain clients," Mr. Dominy said. "Based on this feedback and other Gartner research, we have identified eight key best practices that companies should leverage when outsourcing logistics, manufacturing or supply chain management business process outsourcing (SCM BPO). These best practices can help companies avoid some of the key pitfalls associated with supply chain outsourcing."

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