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Supply Chain Services | XL Logistics Blog

Competitive Edge With Third Party Management Of Supply Chain Services

Posted on 15. Jul, 2013 by in 3pl, Uncategorized

Expanding marketplaces means companies are increasingly challenged to managing their supply chain services more effectively. They must deal with new demands, shorter life cycles, company consolidations and new technologies. Diligent management of a company’s supply chain services is vital to the ongoing success of any company.

What are Supply Chain Services

Supply chain services refer to all the requirements and activities needed to move a product or service from the supplier to the customer. The services include various organizations, employees, activities, resources and information. The activities are those that change raw and natural materials and other components into a final product that can be delivered to the consumer.

There are a number of key elements to the supply chain:

• planning

• sourcing and conversion

• logistics management

• coordination with suppliers, service providers, and customers

• manufacturing operations

• product design

• marketing and sales

Integrated supply chain management ensures operational cohesiveness and successful outcomes for the company.

Best Practice for Management of Supply Chain Services

Companies continually strive to improve profits, reduce costs, and improve the performance of working capital. However, typically a company focuses on the product it produces or the service it provides. That is its expertise. Management of supply chain activities is secondary.

Many companies are finding it most cost effective to outsource the management of its supply chain services to a third party. Such a contracted logistics company specializes in supply chain management. Choosing the right logistics firm can have a critical impact on a company’s operations, including:

• greater operational efficiency

• improved flexibility

• improved customer service

• reduced capital expenditures

Third party management of supply chain services provides the competitive advantage for many successful businesses.

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