‘Outsourcing insources risk’

A growing
trend towards
outsourcing has
elevated supply
chain risk – and shippers
have been advised to take
the necessary action.
According to Andre
Coetzee, managing director
of the Chartered Institute
of Procurement & Supply
(CIPS), the risk to the
supply chain is increasing
in the global environment.
“For years the trend has
been to keep activities
inhouse – but we are
seeing more and more
outsourcing,” he said.
“While this in itself is
not an issue it is however
important to remember
that the moment you
outsource any or some
of your activity, you are
immediately insourcing
risk.”
He said no longer
having the full visibility
of activities, any incident
could significantly impact
on one’s business.
“Companies that
are outsourcing more
should therefore also be
increasing risk mitigation,”
said Coetzee. “In the
ever-changing supply
chain environment it is
essential that successful
businesses up their game
from being tactical to
strategic.”
He said supply
chain risk required
businesses to invest in
the necessary training
of staff to ensure
they were at all times
able to address any
challenges.
“We are no longer
competing in terms
of South Africa,
making it imperative
that companies ensure
they know what their
competitive advantage is
from a global perspective
and are raising their game
all the time.”