Supply Chain Tutorial | Supply Chain Management as Service

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Specialization era (phase II): supply chain management as  service : Supply chains become increasingly specialized with the advent of transportation brokerages, warehouse management, and non-asset-based carriers, and have extended beyond transportation and logistics into the elements of supply planning, execution, and performance management, etc.

Variances in market often require quick changes from suppliers, logistics providers, locations, or customers in their respective role in the supply chain networks. These changes directly affect the supply chain infrastructure ranging from communications between different stakeholders to redesign of processes and work flows that are vital to the organization’s operations.

Supply-chain specialization makes it possible to build on the overall capabilities. It allows companies to focus on their core competencies and assemble networks of specific as well as best partners to aid to the overall value chain itself, thereby increasing overall performance and efficiency.

Outsourced technology hosting for supply-chain solutions started in the late 1990s and has established itself predominately in transportation and collaboration categories. This has advanced from the application service provider (ASP) model from roughly 1998 through 2003, to the on-demand model from 2003 through 2006, to the software as a service (SaaS) model which is of focus today.

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