Neo Tangent and the future of supply chain orchestration: Rethinking the mid-office

Supply chains are in the throes of a fundamental shift. The traditional view of operations as neatly divided between front-office customer engagement and back-office support no longer serves the purpose. The mid-office—historically the connective tissue between these two spheres—has emerged as the battleground for competitive differentiation. Enterprises that once treated mid-office transformation as an afterthought now recognize it as a strategic priority, a shift necessitated by increasing supply chain complexity, heightened cost pressures, and the imperative for resilience.

HFS Research frames mid-office transformation as an important evolution in pursuit of building adaptable supply chains. It is not about a single technology or a one-time reorganization but rather the steady dismantling of silos to enable an integrated, intelligent enterprise. This transition is underscored by three fundamental forces:

1. The pursuit of efficiency beyond automation: Cost reduction is no longer just about automating discrete tasks; enterprises need orchestration of information, raw material, and inventory that brings contextual intelligence into decision-making. With the influx of new tools, technology orchestration has a growing role.

2. Technology-enabled visibility and adaptability: AI, automation, and analytics are increasingly indispensable for managing demand shifts, logistics bottlenecks, and supplier unpredictability.

3. Ecosystem-driven value creation: Supply chain functions no longer operate in isolation; third-party providers are playing a growing role in supply chain centralization, consolidation, and optimization. Service providers have long been integrated into the eco-system but now their role is broadening to encompass forming relationships and closely working with various entities in the ecosystem including freight providers, suppliers, distributors, warehousers, and regulatory authorities.

A recent HFS survey found that more than 60% of enterprises plan to leverage third-party providers to drive supply chain centralization and transformation. This growing reliance on external partners has elevated the importance of orchestration as a core capability.

The Neo Tangent model leverages domain knowledge, and long-standing for supply chain control

Neo Tangent is a supply chain orchestrator rather than just another service provider. Unlike legacy outsourcing models, which focus on executing predefined tasks, Neo Tangent presents itself as an enabler of end-to-end supply chain integration. Mid-office optimization is such an integral supply chain element that the question for enterprises is not merely how to espouse this model but whether it delivers measurable business value.

At the heart of Neo Tangent’s approach is domain expertise acquired over its two decades of existence and a holistic partnership ecosystem acquired through its deep-rooted connection with Li & Fung, which grants it access to an extensive partner and alliance ecosystem. This allows Neo Tangent to exercise substantial control over various aspects of the supply chain, from sourcing and procurement to transportation and last-mile logistics. Unlike traditional outsourcing of back-office functions—such as finance, HR, and IT—which fails to address the broader inefficiencies inherent in supply chain operations, Neo Tangent operates with an end-to-end orchestration mindset. Neo Tangent’s proposition extends beyond transactional efficiencies to encompass real-time decision-making, cost-of-goods-sold (COGS) optimization, and proactive risk management (see Exhibit 1).

Exhibit 1: Neo Tangent’s approach to middle office orchestration encompasses key enablers to value creation

Source: Neo Tangent, HFS Research, 2025: 60%+ enterprises are planning to leverage third-party providers for supply chain centralization and transformation

The key differentiator for Neo Tangent is an integrated supply chain operating model that spans planning, sourcing, procurement, transportation, and last-mile logistics. The real benefits, however, lie in execution. Organizations considering such a model must assess whether Neo Tangent’s orchestration truly eliminates bottlenecks or simply shifts complexity from in-house teams to an external partner.

Evaluating the impact: Achievable gains and strategic trade-offs

The business case for mid-office transformation is largely promising where Neo Tangent asserts that enterprises can achieve efficiency gains year-over-year, COGS optimization, and both front and back-office gains. The viability of such improvements depends on multiple factors (see Exhibit 2). The first is the degree of control enterprises are willing to relinquish. Many organizations hesitate to hand over mid-office functions to an external orchestrator due to concerns about business continuity. As a leading pharmaceutical supply chain executive highlighted, “availability of product trumps cost savings—always.”

Moreover, the promise of cost savings depends heavily on how effectively orchestration reduces redundancies across procurement, logistics, and finance. While some organizations have seen quantifiable savings, others have struggled with integration challenges, particularly when internal and third-party systems fail to align.

Exhibit 2: There are numerous cost optimization opportunities spanning the mid-office

*3rd Parties: Suppliers, customs broker, regulatory authority, freight forwarders and carriers and warehouses
**Primary transportation: Supplier → port of origin → warehouse | **Secondary transportation: Warehouse → stores
Source: Neo Tangent

Moving forward: A strategic playbook for enterprises

Mid-office transformation, if done right, can yield transformative gains. Yet, the practical reality remains that most enterprises are still grappling with the feasibility of outsourcing critical supply chain decision-making functions. The question is no longer whether mid-office transformation is needed but how it can be implemented without disrupting business continuity.

For enterprises, the decision to embrace orchestration hinges on three factors:

• Operational maturity: Companies with fragmented supply chains and siloed functions stand to benefit the most from a mid-office orchestrator—provided integration is seamless.
• Technology readiness: AI and data analytics are critical enablers of real-time decision-making. Without a strong digital backbone, orchestration risks becoming another layer of complexity rather than a simplifier.
• Risk tolerance: The willingness to relinquish control over mid-office operations to an external partner remains a key barrier to adoption.

The Bottom Line: Organizations looking to modernize their supply chains must take a measured approach—leveraging external partners such as Neo Tangent while ensuring continuous capability mapping to remain resilient.

Mid-office transformation is a strategic necessity, but its success depends on the execution. Neo Tangent presents a compelling orchestration vision, but enterprises must be ready to trust and relinquish control to achieve the promised benefits. For those willing to embrace this new paradigm, mid-office transformation could redefine supply chain competitiveness.