Recapturing your supply chain data
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New research from McKinsey (available here with free registration) does a nice job of outlining the challenges of retaining access to key operational supply chain data when you’ve outsourced manufacturing.
The research accurately identifies that “decisions to select a supplier are seldom coordinated to ensure that they optimize total end-to-end costs and delivery performance. In fact, these decisions are commonly driven by procurement organizations, without attention to delivery performance requirements.”
I’ve seen this repeatedly, where companies go into an outsourcing relationship with costs being the sole (or at least primary) driver. That’s certainly a very important consideration, but how are you going to deliver top notch service to your customers when things don’t go according to plan? To think that’s all on the outsourcing partner is naive, you as the brand owner are the one going to be help accountable by the customer.
In order to thrive in this type of environment you need both the information and tools to enable rapid response to change - where you are actively coordinating an effective response - one that is timely and accurate (meaning, aligned with your business objectives).
Recapturing your supply chain data is a lot easier if you go into the relationship with this broader mindset. By establishing data connectivity at the outset, you’ll not only build the proper relationships and expectations, but you’ll lay the foundation for increased collaboration and responsiveness to ensure all of your objectives are met.
