Supply chain management sits at the heart of every business. Smooth and efficient supply chain management is almost unnoticeable – but when problems arise the repercussions are felt right across the business. In-house management, customer relationships and supplier relationships all feel the impact from supply chain management that isn’t quite up to scratch. Given the crucial nature of the role, and the expertise and resources it requires, outsourcing supply chain management has become increasingly popular. Benefits to cost and access to more expert resources are just two of the driving forces behind a move to outsourcing. But where exactly would outsourcing supply chain management take the pressure off?
Risk mitigation
When issues arise along the supply chain, effective management can ensure that they don’t escalate. Supplier issues fall at the feet of the supply chain manager and where this role has been outsourced it means that the pressure doesn’t start within the business. Back-up suppliers are always sourced well in advance to deal with this issue when supply chain management is outsourced. This allows a new supplier to be moved into place asap, mitigating financial risk, and ensuring there is no break in customer experience.
Inventory for exceptional delivery
Handling stock and inventory numbers is not the only part of the process that outsourced supply chain management can deliver. The skill of ordering and re-ordering in the right amounts is a precise one. This ensures that the business avoids delivery delays and overly long delivery times but also isn’t paying to have stock sitting around unsold. Consistency across delivery, as well as providing accurate delivery timing estimates are also key.
Supplier relationships
Supply chains rely on relationships but these can be difficult to establish and nurture for those without experience. It’s not easy to manage multiple suppliers at the same time, particularly as each one comes with their own set of demands and issues. Part of the role in outsourced supply chain management is keeping suppliers happy, dealing with problems as they arise and ensuring that suppliers consistently retain standards of quality and reliability. Cost effectiveness is also a focus – are these suppliers still cost effective for the business, would a different supplier provide a better deal and where could savings be made?
Health and safety
Health and safety is perhaps one of the most demanding pressures on a supply chain manager. It is something that seems unimportant until there is an issue with a product that affects a consumer and then this becomes a major problem for the entire business. Outsourcing supply chain management puts responsibility for the health and safety aspects of logistics management outside of the business – and in expert hands. Sourcing products that meet health and safety standards requires specialist expertise to avoid problems, even recalls, and seriously bad press.
These are just a few of the areas where a business can benefit from outsourcing supply chain management. Putting your supply chain in the hands of the experts provides peace of mind and frees you up to work on driving your business forward.
Get in touch with UCS today for more information by giving us a call on 08448 793229.