Adopt best practice to avoid outsourcing problems: UK report

Understanding what your organisation does best, and what suppliers can do better is the key to avoiding the “pitfalls” of outsourcing parts of the supply chain, a new UK report has stated.

Michael Dominy, research director at analyst Gartner (UK), told Supply Management “organisations must focus on what they can do best and appropriately outsource activities that value chain partners can do better”.

Dominy’s analysis into the outsourcing of activities such as manufacturing, logistics and supply chain management has identified a number of best practices that buyers should adopt. He believes purchasers can prevent future problems by basing outsourcing decisions on “strategic and tangible factors”, such as the overall business objectives, and not just cost.

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