Selecting Supply Chain Partners
Make the right decision for customer satisfaction and your business’s bottom line
We have stood the test of time, largely because we have learned from our experiences, becoming a leading national parts distributor in Australia. A hallmark of that process has been understanding the importance of supply chain management and the role it plays today. We help businesses like yours reach your potential. Contact us today.
What is the importance of supply chain management?
Supply chain management involves optimising the efficiency and responsiveness of your operations to the demands of the market. This will help ensure that you realise the ideal return on your investment. A responsive supply chain gives your business the agility to respond to customer demands as and when they arise, or even if they change. Similarly, efficiency keeps your chain at peak productivity, minimising the costs you incur.
So, how do you select the right supply chain partners? Follow our guide and give your business every opportunity to thrive.
Define your business
Form a clear, concise view of your business. It should detail and explain the challenges you have to face and the objectives you need to accomplish. During this process, you will gain a more well-rounded view of your business and what it needs to achieve success.
Outline the criteria for selection
Now that you know your business a little better and have a clear understanding of what is needed, list the criteria for your selected supply chain partner; this will help you narrow down the different options. Some of the non-negotiable criteria:
Mutual understanding with your supply chain partner
Any supply chain partner must understand your business and its processes, and ensure that theirs are compatible. This is an indicator that your prospective partner is well aware of the services they need to provide to ensure you maximise your bottom line. This will also ensure there is a mutual understanding of any expectations, whether yours or your partners.
Ask for your supply chain partners certifications
It is one thing to get a referral from a close business contact or friend, but certification is a clear indication of the quality a partner can offer. For example, ISO certifications will confirm that your potential candidate is competent and capable of observing any regulations related to your business.
Check their financial stability
The stability and financial standing of the company is critical to the success of the partnership. If your partner finds themselves in financial difficulty, then the consequences could extend to your business, disrupting or even halting your operations. Ultimately, your financial standing, to a certain extent, depends on your partners delivering what is required for your business.
Transparency and access to data
This should be an ongoing feature of the relationship between any partners in the supply chain. It is vital to carry out an audit and assessment to measure performance. This requires transparency between both parties, including making sure inventory and data is visible at any point in the lifecycle. The assessment process will ensure that your chosen supplier does not have any significant shortcomings in any aspect of their systems that might compromise the quality of your service.
Comprehensive transport and warehousing options
Any successful business knows the importance of a contingency plan, yours is no different. Your chosen supplier must show that if a particular warehouse or transport option is no longer available, they have a viable alternative.
If you have short to medium plans to expand your business, then the scalability of your partners is an important consideration for you. If your business grows, the demands on your supply chain will be greater, and your partners must be equipped to cope accordingly. Discuss and ensure that your prospective partner is equipped to scale up their operations if need be.
Rely on the experts
We specialise in third party logistics, warehousing, distribution, transportation spare parts sales, industrial parts contract supply and other supply chain management activities across Australia. Catering to the automotive, commercial transport, industrial, commercial warehousing and other related industries, we are your leading choice for comprehensive distribution, storage and logistics. We are capable of providing the full spectrum of supply chain management services to meet your needs. Rest assured, every solution we provide is designed to address your unique needs and requirements.
Contact us today to find out exactly what you should expect from your supply chain partners.