An Introduction to Managed Services for Supply Chain Management
SUPPLY CHAIN MANAGED SERVICE
In the increasingly competitive modern business landscape, executive decision makers are continuously searching for strategic means for streamlining the supply chain and maximizing their returns. Managed services are increasingly becoming the go-to solution for those in search of improved supply chain efficiencies. But exactly what is managed service and how is it employed to better businesses supply chain? In this article, we will explore the fundamentals of supply chain management solutions within managed services, including the benefits that come with utilizing such setup. For executives looking to make cost-effective and efficient supply chain management decision, this article provides comprehensive introduction to the world of managed services, their associated costs, and potential long-term gains.
A managed service provider (MSP) is an outside entity with which an organization can contract to assume partial or complete responsibility for managing some or all of the organizations IT-related services. The activities of an MSP, specifically those associated with supply chain management, may encompass such tasks as vendor selection and procurement, operational fulfillment, quality assurance and monitoring, shipping and logistics management, and strategic consulting and value-added services. In many instances, the contracted MSP will assume entire responsibility for the entire supply chain from designing to executing thus allowing the organizational staff to focus their energies on more core, mission-critical operations.
Utilizing managed services solution in supply chain management creates number of potential advantages to organizations. One of the most obvious benefits of managed service setup is the cost savings that result; by entrusting the tasks of supply chain management to specialized vendor, the organization eliminates the cost of training or hiring the necessary in-house personnel, as well as the costs associated with the purchase and maintenance of any tools and software needed for the effective management of the supply chain.
Another key advantage of managed services solutions for supply chain management is that the vendors employed by the organization typically employ robust solutions that take the latest in technological developments and savings strategies into the equation; specialized vendor that is experienced in the latest supply chain management solutions will be able to quickly evaluate the organizations position and offer tailored planning, implementation, and tracking services that can ensure maximum effectiveness of the chain as whole.
The value of managed services in supply chain management is further illuminated by the transparency that accompanies such solutions. Because the contracted vendor is usually restricted to the terms of the contract, their activities tend to be easier to monitor and measure, thereby allowing the organization to track and measure progress while assessing the extent of their ROI. In addition, the assigned vendor will typically be available to the organization to offer updates and advice, permitting the highest levels of flexibility and facilitating quicker corrective measures in the case of any supply chain fluctuations.
Ultimately, managed services solutions for supply chain management can have far-reaching and positive influence on any organizations bottom line. Not only do such solutions help organizations by increasing the efficiency of their entire supply chain, but they also create cost savings in the form of decreased personnel costs and streamlined processes, as well as offer transparency into the activities of the managed service vendor, allowing for greater oversight and control of their operations. For those executives in the finance department considering managed service for their organizations supply chain management needs, the potential benefits that come with such solutions are obvious.
