Supply chain design (major report) Essay Example | Topics and Well Written Essays - 2000 words

Supply chain design (major report) - Essay Example Upon provision of guideline for strategic outsourcing the report provides the business with suggestion to outsource functions in order to reap the benefits offered. INTRODUCTION Supply Chain management is originally implemented by companies in order to streamline operations of the business. Overtime importance of the field of management grew more towards art featured science where exploiting different prospects from the business supply chain determined core of success. For instance, well knitted supply chain of high fashion retailer ZARA has been centre of attention for its supply chain being vertically expanded yet offering low response time to market. On contrary to this model of vertical integrated supply chain, outsourcing of supply chain factors have also gained considerable attentions. Hence, in both cases the objective of the in-sourcing and out-sourcing have been to increase company performance (Williamson, 2008). The underlying report provides intends to develop the possible improvements that outsourcing of the supply chain components offer to the business. Upon developing reference from the academic literature and practical example for the outsourcing of the supply chain components the report suggests business to gain increased benefit by outsourcing of its certain components. To mention, the risk associated with this model has also been attended in detail in order to provide comprehensive assessment of the consideration. LITERATURE SURVEY Supply Chain management has taken the driving seat in determining business model of the business. Simchi-Levi et al (2003) noted that supply chain excellence of the business model is its capacity to provide leading excellent experience to customers. The debate on the supply chain has attended both aspects addressing details to dependency on the supplier as well as taking greater control of supply chain components in organizational control. Business giants prefer developing supply chain model with combination of the outsourced as well as in sourced activities considering the role of the activity in respective business model. For instance, Emirates Airline has outsourced its queue management services to Wave Tech in order to provide customers with high quality services, owing to its expanded operations. On contrary to this, businesses have also set examples of in sourcing business function activity for increasing strength of competitive positions such as STARBUCKS has invested in coffee bean farming in China in order develop long term control over business supply chain. Similarly, small business outsource various secondary functions of supply chain such as accounting, payroll functions etc to reduce the cost burden of hiring expert for the purpose on the firm. Flexibility and adaptability of the supply chain are critical factors in the growingly competitive business world. Therefore, businesses are growingly moving towards outsourcing business functions. Respective to the business functions outs ourced emerging trends are giving rise to management businesses ranging from 1PL to most recent 5PL (where number refers to level of functions outsourced or party providing logistics). The concept has been explicitly presented in the image below: (E-logistics Control, n.d.) Expansion of outsourcing the function of supply chain is being adopted for numerous benefits it offers to business. Some of the benefits that outsourcing offers include following: FLEXIBILITY BENEFIT: Outsourcing of a function does not require firm to invest in the