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It's
no secret that the world's most successful companies, such
as Hewlett-Packard, Apple and P&G, owe much of their success to business process outsourcing.
Strategic decisions to outsource logistics and manufacturing can affect capital costs, operating costs, revenue growth, customer service and human capital.
Outsourcing can enable workforce reduction, freedom from restrictive labor environments, expanded geographic coverage, operational flexibility, reduced cycle times, improved responsiveness and cost reduction.
In their search for increased competitiveness and success
in the global marketplace of the twenty-first century, many
companies are following the trend of increased outsourcing, or they are rationalizing their existing outsourced logistics or manufacturing operations to better leverage spend, reward strategic partners and reduce the complexity of too many outsourced relationships.
Our logistics consultants are your first points of contact for learning how you can leverage the power of third party logistics and manufacturing providers.
Outsourcing Solutions
Tompkins
International helps companies establish logistics and manufacturing
outsourcing relationships. We guide you through the steps
necessary to identify, evaluate, select and implement third-party
relationships.
We establish the outsourcing relationship needs,
and then provide the expertise to find and choose the right
vendor, to outline the service parameters, to establish service
agreements and to manage the partnership for long-term success.
We also work with companies needing to realign existing outsource
agreements for greater savings and increased performance.
Our solutions ensure that you realize the maximum benefits
from your outsourcing logistics service provider partner relationships.
Outsourcing as
a Core Competency
Outsourcing
is a management tool that shifts the organizational structure
of companies and a business transformation process that can
create great opportunity for improved performance. However,
it can also create the opportunity for problems, issues and
even failure if poorly pursued.
In the search for core competencies
and non-core competencies to outsource, it's easy to overlook
the fact that outsourcing is itself a competency.
As such, it must be approached with business process knowledge and outsourcing processes experience to reap its full benefits. A company with outsourcing as a core competency can effectively develop outsourcing relationships and manage its outsourced functions.
Read Outsourcing:
Solution or Setback? for a step-by-step guide
to making outsourcing a core competency.
Outsourcing Risks
There
are huge potential benefits from outsourcing. There are also
huge potential risks associated with each of the four major
steps in outsourcing: Strategy, Selection, Implementation
and Management.
Outsourcing
strategy is the process of determining whether or not to outsource
and, if so, what to outsource.
Outsourcing selection is the
process of finding and evaluating potential outsourcing partners.
Outsourcing implementation is where the relationship between
outsourcing partners is defined and established.
Outsourcing
management is the monitoring and evolution of the ongoing
outsourcing relationship.
Each
step comes with its own unique set of risks, which, if addressed,
will go a long way to making the benefits of outsourcing reality.
 Read 40
Risks to Establishing an Outsourcing Relationship (Acrobat
PDF).
Outsourcing Relationships
The percentage of logistics and manufacturing activity provided through Contract Manufacturers (CMs) and Logistics Service Providers (LSPs) is on the rise. With many more companies evaluating the viability and the benefits of outsourcing relationships, it is increasingly important to know just what you're getting into with an outsourcing relationship.
During its life cycle, the outsourcing relationships will form, adjust and reform. All parties involved must plan for this evolution and the changes it will bring.
Learn More About Tompkins
International
To learn more,
simply complete our Information
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