Who is really in control of your Supply Chain?

In light of the seemingly endless reports of economic instability and companies digging their heels in with a wait and see approach to the future, many have put a emphasis on cost cuts and control.  From eliminating entire departments within an infrastructure to canceling the annual Christmas party, the impact of these changes can be felt on many different levels.  I have worked with clients during this time to drill down into the fine details of their business and help develop a solution that will prevent reducing their workforce or eliminating company functions that could inhibit the degradation of a company’s culture. 

A common area for improvement has been the inbound supply chain and routing process.  It is surprising how many companies either ignore the inbound component of their business or place all of the responsibility in the hands of their vendors.  It is common practice for vendors to utilize “shipping and handling” as a profit center to their customers.  In the most extreme cases the client felt they had a better deal than the competition in terms of the cost of the raw material, but failed to realize that the vendor was actually selling their product at a loss just to make a profit off the freight charges.

Another opportunity for additional control has been routing the inbound through a specialized team within our organization to set up checks and balances as well as follow proper routing procedures that have been set by the client.  There are many occasions where the vendor has requested expedited delivery at the expense of their customer in order to meet one of their own deadlines or contract agreements.  Would you allow any outside party to have access to your credit card or bank account without complete control over each transaction?  Freight is commonly one of the most impactful costs that most businesses must control and having a new set of eyes develop a customized solution will benefit the company, employees and culture.

– Jason Lockard, Director of Enterprise Sales
Follow me @BGJLockard

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