As inconvenient as unplanned spend can be, it’s a necessary feature of the supply chain industry. Without fail, there will be a time when your company needs to rely on your unplanned spend budget to keep business running as usual.
Luckily, our team is great at helping you prepare for and cut down on unplanned spend. Here are some of the most important factors to look for when you’re seeking out a new partner.
When it comes to unplanned spend, 3PLs are your best solution to cut back on delays in your supply chain. These companies can help reduce unplanned spend costs and cut back on downtime.
For many businesses, downtime can be much more costly than the expense of working with a 3PL. Some industries, like automotive, can reach fines as high as $4,000 per minute when processes are delayed by a lack of parts or supplies. 3PLs can help mitigate this and cut back on the time spent waiting for product to arrive.
One of the most important factors in an ideal unplanned spend partner is constant, convenient, comprehensive communication.
There are a lot of moving parts in a supply chain, and when pieces are needed quickly, it only gets more frantic. An ideal partner not only has relationships with other suppliers, but they communicate with your company throughout the process, so you can keep your clients informed.
When supplies run short, you need to have a partner that can turn to another source quickly. Like we said, downtime can be one of the costliest factors in a supply chain. That’s why it’s essential to work with a partner that has relationships with other outlets.
If your partner can step up and provide another outlet for your parts, that can cut downtime down significantly and save your company money that otherwise would have been paid in fines or lost in production.
Are you ready to work with a 3PL that provides all of these benefits and more? Reach out to our team today. We would love to help you with your unplanned spend needs.