Supply Chain Management – Outsourcing

Essay by dparakatisUniversity, Master's June 2009

download word file, 14 pages 3.0

INTRODUCTIONMarket globalization and the rapid expansion of information and communication technology are drastically transforming the new business environment. These changes and advances in technology have created an intolerable situation for everybody involved in management. Managers in all organizations must now seek to achieve maximum competitiveness in performing all business processes. In order to do this, they must constantly evaluate the technology on offer and try to achieve performance improvements with what is usually a less than adequate internal skills base. In these circumstances, the use of full-time external specialists through outsourcing has become an important solution to the problem of maintaining competitiveness. (Heywood J. Brian, 2001)Consequently, the characteristics and the quality of a product or service sold to a customer largely depend on several firms involved in its creation. This brought about new challenges for the integration of legally separated firms and the coordination of materials, information and financial flows not experienced in this magnitude before.

A new managerial philosophy was needed - Supply Chain Management. Supply Chains are a hot management topic. Eyes are opening to a more global view of end-to-end material, information, and financial flows. (Stadtler H., Kilger C., 2008)Chapter 1 provides the fundamental concepts of supply chain management and establishes the impact that supply chain decisions have on the performance of a firm. It is also highlighted the important role of SCM in the strategic planning in both large and small companies today. Moreover, in this chapter, ways to achieve - and in what way can be achieved - the supply chain management, are analyzed. In the second chapter outsourcing as a strategic approach for many companies to growth, as long as, reasons why outsourcing is beneficial, are examined. At the end examples are outlined. Finally, the conclusion gives a brief overview of the discussed...