1. Consumers expecting a fast delivery and a reasonable price
Companies are outsourcing their supply chain in order to accommodate the consumers price expectations. However global suppliers often equals extended delivery times.
So, while it might result in a more cost efficient supply chain, it can also have the consequence that the consumers expectations of a fast delivery, are difficult to meet.
2. Global suppliers can result in a loss of control
Extended delivery times can result in a lower level of control. Companies relying on global suppliers often does not possess the same amount of overview. A high level of precision is also essential when it comes to consumer satisfaction and if you outsource parts of the supply chain, the risk of error could increase.
3. The expectation of innovation
Products have a shorter life cycle, because the demands of the market are constantly changing. Also consumers expect continuous innovation. If product features have to be improved, it often takes a restructuring of the company’s supply chain. This is a more complex task, if parts of the supply chain have been outsourced.
A unified and automated supply chain
We believe that companies can achieve significant advantages by insourcing or maintaining the entire supply chain. In order to create an efficient supply chain without outsourcing, we suggest establishing a supply chain were flexible and innovative automatization constitutes the essential core.