There’s no denying that supply chain management, though the backbone of businesses, is an incredibly difficult function to manage. That’s why most businesses prefer to partner with third- and fourth-party logistics companies who have the expertise and resources needed to operate a supply chain successfully. With their help, enterprises can focus on their core competencies while supply chain runs smoothly behind the scenes.
But choosing the right supply chain partner is not easy when there are thousands of options available. What makes it even harder is that once a company is selected, switching partners becomes a time-consuming and costly process. So, here are some things you must do to ensure you make the right choice:
Define your business and goals
In a clear and specific manner, lay out what you do and how you do it. Then, chart out the supply chain challenges your business faces along with specific goals you want to accomplish with your outsourcing partner.
Collaborate with specific partners
Select the companies that provide industry-specific solutions as they are in a better position to accommodate your unique needs. Also, you must ensure that the partner of your choice has a proven track record of providing services that are critical to your business — whether it is warehousing, distribution, or fulfillment. The best bet is to select a partner that specializes in all these services.
Scalability and flexibility
If business expansion is your top goal, then it’s inevitable that you would need extra supply chain support. That’s why the partner of your choice should have the capital and resources to match your growth plans. On the other hand, your partner should also be prepared to adjust resources if the demand drops.
Transparency and access to data
Your ideal supply chain partner should provide you complete visibility into each element of the supply chain. From the status of inventory to lead times — you should be able to understand all the KPIs to conduct a fair audit of your performance.
Technological compatibility
Many third- and fourth party logistics providers have developed proprietary technological tools to manage transportation, vendors, suppliers, and inventory effectively. So it's imperative to ensure that these technological tools can be integrated into your ERP software. A seamless integration will also help in ensuring visibility in the supply chain management process.
H&S checks off all these boxes with its end-to-end services. We specialize in 4.5PL services including warehousing, distribution, and transportation for industries such as FMCG, e-commerce, electronics, etc. We design your optimal supply network and execute the same using our network of warehouses, large fleet, and proprietary technologies. With us as your supply chain partner, you can focus on your other core competencies worry-free!
With the current volatile business environment, selecting the right supply chain partner has become more challenging than ever before. The uncertainty has made several enterprises reevaluate their current partners and their capability to handle market volatility. Nevertheless, the 5 questions above can help you stay on the right track when you take this crucial decision.