Outsourcing IT procurement and logistics services – on the rise
Outsourcing all or parts of the procurement and logistics process is a growing trend for businesses that have gone, or are deciding to go, global. Most of these businesses have made a decision to focus on their core skills and outsourcing allows them to streamline their resources, which in turn, is more cost-efficient.
Organisations have to become IT-management savvy, understanding their internal business needs and weighing up the pros and cons of outsourcing their IT procurement and logistics before finally finding a solution that works for their needs and strategic business objectives.
The advancement of IT procurement and logistics enables businesses to select an almost modular approach to fulfilling their IT requirements. They may have their own supply chains connected to their core business, and be well versed in fulfilling supply and demand within their own field of expertise, yet require a different kind of specialised logistics knowledge for other types of products. When it comes to procuring and transporting their IT equipment, for example, they require the assistance and services of IT logistics experts. Let’s use security equipment as an example. There are global compliance regulations for importing and exporting encrypted items, and specific licence requirements for encrypted goods, depending on the type of equipment. Your IT logistics partner should be clued up on these nuances.
While there’s an international trend towards outsourcing IT procurement and logistics, it’s important to realise the benefits of entrusting the entire IT supply chain to a single outsourcing partner that has expertise across the board. It’s not advisable to outsource piecemeal, assuming it will be more cost-effective. A fractured supply chain creates complexity, and complexity creates cost. Complexity arises when there are multiple service providers across multiple geographies, resulting in a need to manage and coordinate a range of suppliers as opposed to having a single point of contact. With one supply chain and systems integration partner, you can purchase from a single supplier that’s also responsible for:
- managing the order process
- providing advice on requirements, tax laws, vendor fulfilment, and freight, VAT and duties costs
- managing complex situations such as reverse logistics
- delivering the product on time and within budget
- coordinating with project managers to ensure engineers are on site to install and integrate the product
- ensuring the equipment is maintained and operating at optimum efficiency throughout its lifecycle
Thanks to sophisticated control mechanisms to proactively monitor the various components of the supply chain, as well as information systems to connect and coordinate the supply chain seamlessly, you enjoy end-to-end visibility at all times. And if something should veer off course during this entire process, there’s only one number to call.
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