In this section you will learn:
- Approaches to the use of technology in outsourcing
- What outsourcing technology tools exist
- How to utilise technology and systems to support outsourcing
Types of technology to enhance supply chain efficiency
Technology is an enabler that can significantly enhance supply chain efficiency to improve health outcomes. This Outsourcing Toolkit describes three sets of technologies and systems: Visibility and Analytics Network (VAN), Electronic Logistics Management Information Systems (eLMIS) and Route Optimisation
There are two approaches to the use of technology in outsourcing:
In outsourcing, there are two basic approaches to the use of technology. The first is the outsourcing of functional activities that are enabled by technology. In other words, technology and systems facilitate the outsourcing of functional areas, like warehousing and transportation, by providing data, insights, tracking, forecasting, management reports. In this case, technology enables improved decision-making, end-to-end visibility and performance management in outsourced arrangements. The second approach is the outsourcing of technology solutions. This is where technology and systems are recognised as important enablers for supply chain performance, but IT capacity is limited in-house thus requiring the consideration for outsourced technology solutions.
How systems and technologies can be used for effective outsourcing arrangements
Technology can be used to support and enhance the outsourcing process.
eLMIS, as an example, is a logistics planning and management system that can support outsourcing arrangements.
VAN is an end-to-end visibility and analytics system that informs central decision-making through enhanced performance monitoring and tracking of third-party and in-house activities across supply chain activities.
Technologies, such as route optimisation tools and Logistimo, can be outsourced and used to effectively identify opportunities to improve transportation cycle times, make more effective use of resources and enhance service delivery.
Supporting systems and technology assist with:
- Provision of data and insights
- Tracking, measuring, monitoring, and reporting tools
- Forecasting and management tools
- Improved decision-making
- Increased transparency and accountability
Outsourcing Toolkit Technology Tools
1. Visibility and Analytics Network
2. Electronic Logistics Management Information System (elMIS)
3. Route optimisation
- A Visibility and Analytics Network (VAN) is a group of supply chain experts empowered by a VAN blueprint
- It provides end-to-end visibility across the supply chain network
- It aims to make the supply chain more collaborative, aligned, agile, and demand-drive
- OpenLMIS is an Electronic Logistics Management System (elMIS) with open-source software for managing health supply chain
- It provides support for functions such as forecasting, warehousing, inventory management, performance management
- Logistics is an eLMIS tool for enhanced reporting
- It offers a tool for supply chain activities such as inventory management, cold chain monitoring, performance monitoring, transporter management, and vehicle routing
- Route optimisation is the process wherein the most efficient routes for deliveries and transport are calculated
- This can reduce costs while also importing the effectiveness of logistical routing