Supply Chain Operations Outsosourcing: A Strategic Approach To Creating Significant Economic Value

Countless papers, analyst reports and perspective pieces have been written on the merits and the pitfalls associated with Business Process Outsourcing (BPO). BPO is widely accepted as a cost reduction vehicle that involves contracting the operations and responsibilities of a specific business function to a third-party service provider. In the supply chain arena, BPO has traditionally focused and thrived in the warehousing and logistics functions. Many companies today tap into expertise of third-party logistics providers to execute the transportation, physical handling and storage of products as they flow from the point of creation to the point of consumption.