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Critical Thinking

Outsourcing and offshoring initiatives can help an organization fine-tune its business model to become more resilient and profitable. At the same time, these initiatives present challenges.In today’s highly competitive, extremely variable, and dynamic environment, many firms are seeking solutions. Supply chain management becomes more sophisticated and the difference between what firms want to achieve and what they can do in-house continues to grow, firms begin to realize that doing the right thing becomes more interesting than doing everything. Accordingly, they are becoming better focused and more specialized by outsourcing and offshoring activities that are far from their core businesses. In many cases firms decide to outsource this function in whole or in part to agents or third-party logistics firms.

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