¿How to optimize your service lines?

 

Optimizing your supply chains is a necessary step, especially if you want to explore new markets or want to launch a new product. You might be divided between taking care of the supply chain yourself or bringing in new partners to optimize the quality and efficiency of your operations.

The choice depends on the needs of your business but there are key variables to consider choosing the better fit.

1. Available resources.

Do you have the time and money to manage multiple supply chain vendors for each product line? If the answer is no, getting a partner is an option.

2. The priorities of your organization.

When it comes to optimization, you need to decide whether you optimize your process for design or costs.

3. Supply chain life cycle.

Can your current supply chain grow and evolve alongside your product lines?

4. Supplier relationships.

Are you a priority customer for your current supplier? Will your supplier help you optimize for each product line?

5. Risk.

Can your company handle the risk of involving a new supplier?

Having a single supply chain keeps things simple. Managing fewer personalities and hand-offs throughout the production process can reduce errors and lighten the load on your management team.

There are risks involved with delegating things off to a new supplier, and you may not get the level of service you were promised in the initial sales pitch. 

Although a new supplier may make big promises, you already know what you can expect from your current supply chain, so it’s less risky in the short term to keep working as you are. 

If you are planning to make the investment in a new supply chain, consider how many units will have to be sold to recover your sunk costs. Don’t change suppliers without verifying if there is potential to recover your costs.

You must prioritize and define service expectations and requirements before starting operations with your supplier, plan alternatives in the design of logistics solutions, and anticipate challenges.

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