Market Tendencies

Globalization
Competitiveness in a globalize world requires some key features from companies:
To focus in their core business.
To work fast and efficiently in all of their operations.
To develop more efficient relationships with suppliers to share information and trust.

A successful supply chain delivers to the final consumer the appropriate product, at the right place, at the right moment, at the required price and at the lowest cost.

To compete in this new age, it will be necessary the following equation:
Competitive Advantage = Product Excellence + Excellence in Processes.

Market Tendency
Outsource everything that is not a competitive advantage.

The strategic goals to outsource are:
To focus in the “core business”.
To reduce costs.
To obtain value added benefits (faster deliveries, inventories and assets reductions, improvement of customer satisfaction, etc.).

Why supply chain management outsourcing?
To be able to have an effective and global SCM, an enterprise shall do many things well.
Therefore, the strategy is to define where to invest the money produced by the company:
In resources to design, manufacture, store and deliver products? or
In different ways to rapidly increase sales with less infrastructure?

 
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"Outsource everything that is not a competitive advantage."