In-house supply chain strategies are a major responsibility. Not every company has the time, resources, or expertise to manage a flexible and efficient supply chain solution on their own. That’s why many businesses outsource their supply chain processes to 3PLs and other external providers.
A supply chain as a service (SCaaS) model allows companies to improve organization and efficiency by outsourcing supply chain operations to one or more partners. See why you need to understand supply chain as a service and how it can benefit your company with this overview.
What Is Supply Chain as a Service?
Supply chain as a service is an external supply chain model that seeks to continuously improve efficiency and flexibility through the resources and expertise of outsourced services. In SCaaS, companies work with one or more logistics partners to handle production, manufacturing, warehousing, inventory control, order fulfillment, and shipping.
SCaaS uses superior solutions—such as cloud technology, automation, and more—to optimize infrastructure throughout the supply chain. These solutions, along with the expertise of your logistics partners, create a supply chain strategy that is fast, flexible, organized, and cost-effective.
Implementing Superior Technology and Automation
Modern infrastructure and technology can be a great boon to your supply chain. Smaller warehouses, e-commerce businesses, and similar companies don’t have the physical space to implement these solutions.
That’s where logistics partners come in. Experts such as 3PLs have access to the best equipment and technology in the industry. By outsourcing to these companies, you gain access to automatic pallet wrapper machines and other invaluable supply chain solutions. SCaaS allows companies to benefit from advanced technologies such as automated packaging equipment, cloud-based management systems, and much more.
Promoting Resilience in the Supply Chain
SCaaS grants more flexibility throughout the supply chain. This allows companies to better react to fluctuations in demand. For example, you can scale resources during busy seasons such as holidays, then readjust your operations to avoid wasting time and money during quieter seasons.
Greater flexibility in the supply chain comes from access to innovative solutions, utilizing digital, cloud-based management software, and relying on guidance from expert logistics partners. With better mobilization and control over the supply chain, companies can confidently react to changes in demand, supply chain disruptions, and other industry obstacles.
Understanding supply chain as a service is the key to giving your company the resources and expertise it needs to optimize your current practices and scale with future growth and success.
