The supply chain manages many transactions and reporting requirements, therefore is becoming the next function to be migrated within the Global Business Services (GBS) organisation. This follows the centralisation of other functions such as finance, HR, and IT. In the short term, this trend is playing out for major global operators, but it is likely to set the scene for others to follow.
Supply chains have many repeatable, transactional, and scalable activities, making the function ripe to bring under one roof. Centralised supply chains can help organisations to leverage cost efficiencies, scale, and to engage analytics, automation, and AI. Centralisation can also help to elevate global end-to-end supply chain visibility, enable faster and more informed decision making around warehousing and logistics requirements, and provide greater risk governance and resilience coverage.
A more mature supply chain function under GBS may also feature capabilities such as fully standardised supply and demand planning, dedicated and integrated logistics control towers, integrated primary and secondary logistics systems, e-commerce, and self-service capabilities.