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The emergence of "as-a-service" platforms and providers adds more complexity to the supply chain outsourcing discussion. It is no longer just about logistics outsourcing. Manufacturing, planning, warehousing and more can now be obtained as a service as well. Organisations must decide what components they will outsource and what they will provide in-hous

To be future-ready, organisations should develop an outsourcing strategy for their supply chains that establishes a balance between the importance of cost, service delivery, risk mitigation and longevity of relationship.

Idle, under-utilised assets are a fixed operational burden that organisations no longer need to tolerate. The rise of digital platforms provides supply chain leaders with access to a whole new world of highly efficient and cost-effective services. These technologies provide operational leaders with both choice and convenience, allowing for the purchase of supply chain services from third-party providers on a flexible (as-a-service) basis.

In this platform-based world, the supply chain will become increasingly modular with organisations constantly buying from and switching services between multiple players. Managing such complexity calls for new capabilities:

  • a flexible workforce powered by intelligent automation
  • keeping control of your third-party ecosystem
  • driving a vision for the future

By 2025, the World Economic Forum estimates that digital platforms could generate US$60 trillion in revenue. Platform-based direct-to-customer (D2C) sales models also help by shortening supply chains, effectively boosting margins by allowing businesses to retain value that would previously have been absorbed by partners and wholesalers.


Rakesh Agarwal

Rakesh Agarwal
KPMG in Singapore

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