Think about it, when you buy a car, you aren’t looking at the overall quality of the car. You are just trying to get a vehicle to move from point A to point B. If all you were concerned with was the cost, then you may end up with a sub-par vehicle that doesn’t hold up as well as the next one because it cost too much. But, when you look at the quality of the car, and how long it holds up, you know you got the right car for you at the right price. Therefore, your overall supply chain performance is improved.
However, in the case of supply chain management, we know we need to look at several factors: vendor quality, working capital management, and the system itself. Let’s talk about vendor quality first. One of the most fundamental requirements of a good supply chain management strategy is making sure that your vendor delivers what they are billing for. What does that mean? It means the product is used correctly and properly, period!
So, what does that mean? It means testing. You need to test and check and make sure that everything is working properly. Otherwise, you’ll be spending more money, not getting the work done, and wasting time and energy on something that’s not going to benefit you or your business.
Another thing you need to do is make sure your vendor follows through on the work that’s been assigned. If they work through the set schedule, but then don’t execute, that’s problematic. They need to make sure they execute what was requested. If they don’t, then that’s a warning sign. They need to know the work is being completed, and they need to execute it.
And, lastly, you need to be able to test and check and make sure everything’s moving along as expected. This means having the system performs as expected, with fewer interruptions, smoother process, and more accurate data. This is all based on testing. When you have more testing, you can detect errors before they get into the production line. When you have fewer interruptions, you’re reducing costly rework, you’re reducing the risk to the company, and you’re increasing the speed at which the product can get to market.
The bottom line is this. When it comes to your supply chain management challenge, identifying and eliminating the negatives isn’t as hard as it seems. It just requires a little effort, patience, and knowing what you want to accomplish. With the right approach, you can identify areas of opportunity and properly manage the risks involved.
One of the best ways to address these issues is with the help of outsourcing companies. These companies understand the unique aspects of your business, and they can help you streamline and simplify so you can maximize your time and resources. They provide training and provide resources that are designed to make the entire process more effective. These services are affordable, and they come backed by an unlimited, 100% no-risk guarantee. So make sure to check out outsourcing companies before deciding on your next step. If you’re willing to put in the effort and invest in your company, outsourcing can be one of the smartest decisions you can make.