Supply chain management puts the customer at the center. This means that a good logistics partner should do the same. With supply chain managers being asked to increase profit margins while delivering quality and innovative products to the consumer, the last thing they need is a partner that can’t deliver. That tricky part is that most will deliver the moon, but have no stable track record of getting it done.
According to the Council of Supply Chain Management Professionals (CSCMP), supply chain management encompasses the planning and management of all activities involved in sourcing, procurement, conversion, and logistics management. It also includes coordination and collaboration with channel partners, which may be suppliers, intermediaries, third-party service providers, or customers. Supply chain management integrates supply and demand management within and across companies.
The more integrated a partner is with a client’s supply chain, the more likely the company can deliver with their current resources and partners. Topics such as forecasting demand and lowering costs should be proactively discussed with logistics partners to maximize partnerships. This is particularly important when demand increases and manufacturing deadlines are tight.
Proper planning and communication allows supply chain managers to continuously add value to their teams. Having quarterly meetings regarding production helps logistics and distribution partners to schedule resources accordingly and build a sustainable supply chain. One of the biggest benefits of having these kinds of meetings allows clients to see how flexible their partners can be and how much leverage they can gain from tapping into their strategic relationships.
When planning on receiving merchandise internationally it’s important details like weather, political issues, or even changes in regulation or fees need to be considered. Finding options and creative ways to minimize costs creates added value to customers looking for a reliable logistics company. Problem solving is a core competency that’s often promoted, but still, where difficult to find.
