At the end of the day, every organization wants to keep its supply chain in the best shape possible. At TOC Logistics, we understand this. It’s why we help each of our clients create fully optimized supply chains that address their unique needs. Part of this includes ensuring your supply chain has safety and diversity built into it. Not sure where you’re at on that journey? We won’t leave without you. Jump on in!
This isn’t our first time talking about safety measures (and it won’t be our last!), but this time around, we’re discussing external safety measures, instead of ones that affect the team.
When establishing new connections, it’s important for an organization to thoroughly research prospective vendors, suppliers, and carriers. Some great questions to ask include:
- Do our company values align with one another?
- What are this supplier’s risks?
- How would a partnership between our organizations be mutually beneficial?
While it’s not a complete list, this line of questioning can get an organization in the right mindset to really dive deep into a prospective supplier and ensure they’re a good fit.
From financial transparency to how they treat their employees, your supply chain will be safer when you cover your supplier bases. This means looking into more than cost and material quality.
Additionally, you should be prepared in the case of risks to your suppliers, such as obtaining certifications, economic conditions, or location-based regulations.
Finally, remember to evaluate your relationship periodically. Ensure they meet your standards and that both parties involved are benefitting from working together. Choose your goals and monitor how your supplier assists you.
Diversify and Save
Diversity makes your supply chain more competitive. On one hand, having a diverse group of suppliers can lead to competition and cost savings. Expanding your network will open the door to different conversations and potential business relationships. Obviously, having low-cost suppliers around world is ideal, since these relationships can help with timely deliveries. It’s just one reason why it’s important to continually grow your network of suppliers.
Know the key players in your supply chain’s region. If you’re able to utilize the services of multiple suppliers in one aspect of your supply chain, there is little risk if one doesn’t work out or goes through changes. This is the key to a consistent and trustworthy supply chain.
Look at the data. Where should you be looking for alternative suppliers? Where do you need extra assistance? These questions can be answered by the numbers. Review what parts of your supply chain need the most help and begin to create relationships with other suppliers. If you need a little help, we’re always happy to dive into your data for you.
The real question: how does diversifying suppliers save organizations money? Due to competition among suppliers, costs are likely to go down. This means suppliers that want to work with you will do so at an effective cost for both parties.
To get started, organizations should ask themselves the questions at the beginning of this blog. Take a look at current supplier situations, look at the data, and begin taking in the environment of each supply chain. What does the organization need? Who can help? Build these relationships, start saving, and create a more efficient supply chain.
At the end of the day, expanding suppliers can lead to dramatic savings and advantages for an entire organization. Not sure how to get there? Reach out today
I broke these into a bunch of different questions. We’re talking about partnering with a vendor, essentially, not safety internally. Did you run into any other questions or things that supply chain managers should keep in mind when they reach out to a potential supplier?
Alternatively, did you run into anything talking about how having a diverse group of suppliers can help protect a company’s supply chain? Or maybe mitigate risks?
When we talk about diversity, we mean a wide range of suppliers, like one who specialize in a specific thing, are located in various areas, etc. Not racial/ethnic diversity. Can you run with this thought here and expand upon how an organization can start diversifying their suppliers and why that would save them money?