Supply chain handles many transactions and reporting requirements and therefore becomes the next function to migrate within the Global Business Services (GBS) organization. This follows the centralization of other functions such as finance, human resources and IT. In the short term, this trend is playing out among large global operators, but it is likely to set the stage for others to follow.
Supply chains have many repeatable, transactional and scalable activities, making the function ready to be brought under one roof. Centralized supply chains can help organizations leverage profitability, scale, and leverage analytics, automation, and AI. Centralization can also help increase end-to-end visibility of the global supply chain, enable faster and more informed decision-making around warehousing and logistics requirements, and provide better risk governance and resilience coverage.
A more mature supply chain function under GBS may also feature capabilities such as fully standardized supply and demand planning, dedicated and integrated logistics control towers, integrated primary and secondary logistics systems, e-commerce and self-service capabilities.