A supply chain involves information, and resources involved in moving a product or service from supplier to customer. Supply chain activities involve the transformation of natural resources, raw materials, and components into a finished product that is delivered to the end customer. In sophisticated supply chain systems, used products may re-enter the supply chain at any point where residual value is recyclable. Supply chains link value chains.
In business, outsourcing involves the contracting out of a business process to another party and may involve business process outsourcing. Outsourcing sometimes involves transferring employees and assets from one firm to another.
Outsourcing includes both foreign and domestic contracting, and sometimes includes offshoring (relocating a business function to another country). Financial savings from lower international labor rates can provide a major motivation for outsourcing or offshoring.
The opposite of outsourcing, insourcing, entails bringing processes handled by third-party firms in-house, and is sometimes accomplished via vertical integration.
Outsourcing is a very important tool for reducing cost and improving quality.
is the management of the flow of things between the point of origin and the point of consumption in order to meet requirements of customers or corporations. The resources managed in logistics can include physical items, such
Manufacturing of a vessel dished end (Photo credit: Wikipedia)
