| Business process outsourcing (BPO) traditionally | | | | confident in the knowledge that the supply chain |
| involves the outsourcing of business functions to | | | | logistics are being taken care of externally. It is a |
| third-party providers and has its roots in supply chain | | | | growing trend throughout the world’s |
| management provision to major manufacturers. | | | | manufacturers, employing third party providers to |
| Although, BPO now also applies to functions that are | | | | implement state-of-the-art software solutions for their |
| traditionally back office departments, such as finance | | | | entire manufacturing and delivery processes. There is |
| or human resources, it is still incredibly relevant to | | | | also a synergy involved in using a third party company |
| supply chain logistics. | | | | that develops its software based on wide and varied |
| Given the global nature of business in the 21st century | | | | experiences from a number of industries throughout |
| it is extremely important that any enterprise involved in | | | | the world, rather than just one manufacturer. |
| selling products can provide them in any required | | | | The benefits of implementing such supply chain |
| quantity to any worldwide location. This is not only vital | | | | logistics management systems not only include the |
| to generate income, but repeated timely delivery also | | | | improvement of the order to delivery process but also |
| enhances the reputation of the company, engendering | | | | provide considerable cost savings. For example, |
| customer and client loyalty that helps improve its long | | | | sophisticated software can source materials at |
| term business prospects. | | | | reduced costs, often by bidding for them at multiple |
| Manufacturers that attempt to fulfil their own supply | | | | locations before eventually purchasing the cheapest to |
| requirements using internal resources can incur | | | | the required amount, therefore ensuring that the best |
| significantly large development and operational costs. | | | | deals are always sought in terms of finding resources. |
| As it can be extremely expensive to achieve the | | | | The third-party provider of supply chain logistics |
| objective of delivering products on time to the right | | | | management delivers a seamless service to its client |
| location by utilising this approach, many companies | | | | and it is that combination of cost savings and |
| instead opt to buy-in their supply chain logistics | | | | efficiency improvements that prompts manufacturers |
| management as a third party service through business | | | | to opt for BPO, over using internal resources. Not only |
| process outsourcing. | | | | does it reduce the costs to both customers and |
| By utilising such business process outsourcing an | | | | suppliers, but at the same time ensures that margins |
| enterprise’s management team can keep their | | | | and production quality are maintained, so everyone |
| eyes on what is important to them and what they are | | | | wins. |
| trained for i.e. building their business and attracting sales, | | | | |