Once you decide to outsource your business, there are things which you need to ponder before you pick your supply chain provider. Association with a proficient supply chain provider can help increase your profitability many folds. With expertise in their domain, a good supply chain provider can help effectively optimize your existing supply chain.
With the sweeping number of supply chain service providers in the market, it can be exhausting to finalizing one for your business. Here are some deciding factors which you should consider before going ahead with any of your outsourced partners.
Role of Experience: It is important to know as much as you can about the leaders of the vertical you are associating with. Their experience and exposure is one of the factors you can count on.
What value do they add: Before finalizing, think through as how the supply chain provider can optimize your processes? There are many supply chain providers in the market – both big and small, but their scale should not be the criteria of selection. Sometimes it’s better to go for a smaller player who can provide solutions that cater to your needs and can add desired value to your business.
Be clear about your goals/priorities: Setting your expectations clear in your mind can help narrowing down your list. Based on your priorities whether you want to control your cost or your focus is to improve the customer experience or you want to expand your presence with their association, you can chose the best fit for yourself.
Closely observing their track record: It is advised to do a reference check to evaluate the supply chain providers by looking closely at their previous records. Taking a reference from their partners can give you a fair idea of their capabilities and can help you decide to make your mind. You can also ask for case studies as well.
Scalability/ Flexibility offered/ Focus on customer centricity: In this dynamic business model, always look for the supply chain providers who can assure customisation and give you an edge in the industry without losing focus of desirable level of customer satisfaction.
Good Reporting Systems: It is one of the biggest challenges in the logistics industry to keep a track of the transactions. Proper reporting systems in place can simplify a lot of tasks and can increase the visibility or transparency in the process, which you being the process owners would highly appreciate. Look out whether the supply chain provider has such systems in place and if they have a scope for investing in technology by still keeping it a cost effective process providing more speed with lesser ambiguities.
Pricing Parameters: It is good to research the market pricing for the services you are expecting and compare what has been offered to you by the shortlisted providers. However, ensure that the quality should not be suffered or compromised. Remember cheaper isn’t always better.
Reliability and Culture: To be doubly sure, you can get the hang of their infrastructure, the availability of the staff; this will give you a fair idea about the reliability of the service provider. In addition to this, it would be better if before taking the call you can have a feel about the culture of the organisation you are getting associated with. A good working culture will help you for sure, as a smooth transition can only be possible if you have cordial relations with your service providers. To have a successful association in a long run it’s important to have an ethically/culturally sound organisation to work with.
It’s important to invest in finalizing your supply chain provider to experience a successful outcome. A good service provider not just increases your profitability many folds but can also keep you focused on your core business without draining resources from your day-to-day operations. Holisol’s expertise in delivering many successful supply chains to the multiple industries, can be of great help to your business.