Outsource Supply Chain Management: A Checklist for Finding the Right Partner

Proper supply chain management can be critical to the success of your product. Because of this, many companies choose to outsource their supply chain management.

With poor supply chain management, mistakes can be made and deadlines can be missed, leading to expensive penalties. These costs can be very pricey, making it important to get things right from day one.

These high penalties and lost opportunities often cause companies to turn to an outsource partner to completely manage their supply chain. They need a full-service organization with the expertise to manage the many different moving pieces, and to have a fully documented procedure to ensure success in all aspects of the program. In the end, outsourcing can be the most efficient and effective use of company resources: money, personnel and systems. In today's marketplace, the complexities and short lead time required to be successful with big and small companies requires a clear understanding of the issues that can cripple organizations big and small.

Choosing just any supply chain partner does not automatically guarantee success. It's important to evaluate your outsourcing options and locate the ideal company that fits your company best. Ask these questions to find your best partner:

1. How do they choose suppliers? Finding the right supplier for the right task is critical. Look for supply chain management companies who use supplier selection surveys and evaluate their suppliers routinely.

2. What do you want them to do? Depending on what stage your program is at, you will need to determine what services you need an outsourcing provider to handle. Make sure to consider all potential pitfalls, and evaluate all options to meet your goals.

3. Do they have a documented operational procedure? A detailed roadmap should include a reverse time line and milestones on the way to a successful launch. This will help management ensure you are able to meet your customers expectations, and guarantee your program is delivered on time, to the correct location and meets all specifications outlined in supply agreement.

4. How will they orchestrate the process? Once the roadmap is created, find out how the outsource partner plans to implement it, streaming the process from manufacturing to distribution and logistics. Goals will need to be set to drive out inefficiencies and maximize ROI.

By asking these questions before making a decision, you will be in the best position to ensure your supply chain management partner will help you consistently deliver your product from launch through national roll out.

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