Dupré Logistics


Globalization and Outsourcing

Monday, October 31, 2011

Globalization and outsourcing are here to stay.

The players will vary and changes will come, but, from a business perspective, the entire world can be the market for any given company, in the United States or abroad.

It has been stated that companies today spend at least half of their income on products or services purchased from outside their company. As businesses were forced to become more efficient during the recent recession, they tended to focus on their core operations and outsource the rest, both in terms of services and hard goods. By doing this, they became more efficient and profitable.

However, because they lost some of the control over some products or services that were formerly accomplished in-house in the past, more organization was required to ensure everything they needed was available at the appropriate time. They had to keep control of their inventory to assure that they didn’t run out of something that would delay other operations, thereby adding to the cost. Many companies that previously managed their own distribution now find that it is much more efficient and cost-effective to work with a capable logistics company that has the technology, depth and knowledge to help them meet their needs.

Businesses need to assure they are not just checking what they need today, but that they see new trends and are flexible enough to adapt as needed. The best way to achieve this, in most cases, is for businesses to concentrate on what they do best and to choose outside sources who can truly partner with them so each party can concentrate on their own core capabilities and both stay ahead of the crowd.

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