2013 Readers' Choice: Outsourcing

CGT’s readers rank the top 10 companies that provide business outsourcing/IT services to the consumer goods industry.

Download the full Outsourcing Report

The top three spots on this list go to the same market leaders as last year, although Accenture switched places with HP. What’s exciting is that TCS moved up three slots from No. 8 in 2012, perhaps reflecting the success of its fast-growing Retail & Consumer Products unit. Simon Ellis, practice director, Supply Chain Strategies for IDC Manufacturing Insights, sheds light on the current needs of consumer goods companies when it comes to outsourcing.

What are the top three business processes being outsourcing today?

Ellis: We are seeing consumer goods manufacturers outsourcing those processes that are not germane to brand identity, which is their chief focus. Transportation, warehousing and retail support are three functions that manufacturers have found value in outsourcing. Each of these is being successfully outsourced to providers who often have not only the necessary state-of-the-art infrastructure, but also best practices that an in-house operation might lack. On the retail support side, many manufacturers are identifying key accounts and keeping tight ownership of those relationships, relying on brokers to facilitate the remaining customers more effectively.  


What are some of the more surprising or unique processes being outsourced?

Ellis: Consumer goods companies have been grappling with outsourcing aspects of customer service for several years, and we are seeing this trend increase. Customer hotlines are an example of one process, while some are outsourcing aspects of order management and other customer service processes. TPM is also being outsourced.


Can outsourcing help companies enter emerging markets?

Ellis: One of the more intriguing topics for study is how consumer goods companies are moving into emerging markets. The notion of global sourcing becomes an important aspect of this dynamic, and at IDC Manufacturing and Retail Insights, we envision a global sourcing approach we call “Profitable Proximity Sourcing”, where companies balance lead-time and cost optimization with near- versus far-shoring. One of the challenges for the manufacturer in breaking into these emerging markets is the application of the “interface rules” — how to balance country (and customer)-level priority within those countries. Forecast precision and inventory visibility are two critical enablers for this regional-national approach, and collaboration among supply chain partners is key. We see outsourcing as a viable resource for consumer goods companies that need to quickly understand all of the rules and nuances of competing in new markets.  

BREAKOUT FAVORITES

Customer Experience Leader: Deloitte

“We get high-quality, cost-effective service where we are able to quickly explain what we need and obtain the results that are required. Deloitte listens well to what our concerns are and is quick to respond… it’s a priority for them.”
— Director of IT, Company Name Confidential

SMB Market Leader: IBM

“With integrated solutions hosted and managed by IBM, Albaad has the enterprise-wide view of skills, inventory and manufacturing that will enable international expansion.“
— Rafi Shamir, Operational and IT Manager, Albaad