Effectively managing vertical supply relationships-a risk management model for outsourcing.pdf
Effectively managing Introduction Having studied the structure of their supply vertical supply chains, managers may decide that they wish to relationships: a risk outsource certain activities that are currently undertaken by internal staff. Outsourcing is management model for defined as the transfer of previously in-house outsourcing activities to a third party. Over the past decade, there has been a marked increase in Chris Lonsdale the use of this practice, anisations outsourcing activities ranging from cleaning and catering services to the IT function, which can often account for a spend running into tens of millions of pounds. It has been noticeable, however, that most of the research undertaken into outsourcing The author has revealed that a majority of managers are Chris Lonsdale is Programme Director of the MBA in dissatisfied with the e of their deci- Strategy and Procurement Management and a Research sions. For example, a recent study showed Fellow at Birmingham Business School, The University of that only 5 per cent of managers felt that the Birmingham, UK. arrangement had met its objectives, with the majority reporting a mediocre e (PA Keywords Consulting Group, 1996). The view of the author is that such statistics Outsourcing, Supply chain management, are not due to there being any inherent flaw in Risk management, Resource manag
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