Author: Ethan L Scott
4 ways to maximise your supply chain management consulting benefits
Digitisation has increased competition within businesses, who are now under constant pressure from the empowered customers to deliver and maintain the quality of service at all times. The increasing demand combined with high market volatility often tends to squeeze the supply chain of a business, thereby causing fluctuations which may affect service.
In such times of challenge, an experienced supply chain management consulting organisation can guide your ship through rough waters and help stabilise your business, keeping your service intact and your consumer relationships in place. Not only can these consulting firms diagnose the problem, but they can offer cost-effective solutions which can put in place the scattered pieces of your business.
When To A Hire A Consulting Firm?
More than 50% of the companies in the market don’t know how their supply chain was designed and defined. In most cases, these supply chains were evolved rather than designed and hence have a number of factors which can be improved within them. You need to hire a supply chain management consultant if:
- The cost of the supply chain is deeply influencing profits.
- Is facing frequent disruptions, leading to customer dissatisfaction.
- Is making it hard for you to achieve your company goals.
However, with an array of consulting companies out there, company decision-makers need to filter out and decide which organisation to shake hands with. Below are the top 4 ways or rules which companies should keep in mind to maximise the supply chain management consulting benefits:
Look For Organisations Which Can Assist With Demand Planning And Forecasting
One of the trickiest and hardest parts of supply chain management is to correctly predict and document future demand and to plan inventory accordingly. A lot of companies struggle with this part of their plan and poor forecasting often tends to result in exorbitant expediting cost as well as missing revenues altogether.
In such situations, a management consulting company having expertise in demand forecasting can help you choose the right application for forecasting (Salesforce, Zoho CRM etc.) and can further assist your team in improving their forecasting results, thereby increasing your revenue and decreasing the cost of running the supply chain.
Seek Consulting Partners Who Can Help With Business Integrations
As the times have evolved businesses are no longer competing on the product front, and instead, the competition has shifted towards the service front. Most of the businesses face issues with regards to business integrations with supply chain partners. These issues which normally arise due to an internal bias are hard to separate from real integration problems.
A good supply chain management consulting company should be able to look at the problem objectively and hence should be able to differentiate integration issues from internal biases. They should be able to help you decide whether you need to outsource logistics and other components of the supply chain to improve the performance or an in-house solution is the best way to go.
Choose Companies Who Can Help With Business Rationalization
It doesn’t matter whether you are a big MNC or a small startup at some point in time you will expand. During the times of expansion, it often is the case of a merger, companies are left with excessive resources which often overlap and coincide with each other and add surplus cost to the overall budget.
In such times, a company with an experience in supply chain management consulting would be able to provide a helping hand which can help sort and remove redundancy from the system as well as in the cases of the merger should be able to synergize the supply chains of two organisations.
Finally, Choose An Organisation Who Can Help Optimize Your Existing Strategy
In order to maximise the benefits offered by a supply chain management consulting firm, look for companies who can help optimize the existing strategy. A complete overhaul from an existing supply chain model in most cases isn’t required and a good consulting organisation would be able to identify problems in the current scenario and hence will come up with solutions to correct those. Take into account their time to serve vs cost to serve ratio, and make sure this number is as small as possible. Similarly, see what network optimization strategies have they devised and what has been the performance. Before hiring, test their skills, by asking them to help benchmark a few issues through auditing which are affecting your network.
To achieve business success, the need for an adequate supply chain management model is higher than ever. Managing contracts, supplier relations, ensuring delivery etc. along with fulfilment of regulations often takes a toll on the company’s business, and in such times a supply chain management consultant can prove to be of great help.
Getting the right organisation who can help put in place the 3D’s (design, development, deployment) of supply chain management can help multiply the profits of your organisation while at the same time subtracting risks. Therefore in order to hire a great supply chain, management consulting firm make sure you keep in mind the above tips and hire someone who helps your business achieve exponential growth.