Supply Chain networks that are not set up to support scalable, profitable growth have a high likelihood of negatively impacting your customers, impeding your growth and consuming far more resources than ever imagined to sustain. Yet what is ideally mapped out one year is likely to change the next in today’s Amazonian marketplace. Thus, assessing your supply chain network from your suppliers’ suppliers through your manufacturing and logistics networks to your customers’ customers with an eye to customers, cost and cash will undoubtedly yield results.
So, what are some prompts to know it’s the ‘right’ time?
- Renew your lease, buy or move? – As your lease comes due, it is a natural time to re-evaluate your supply chain network to make sure you are positioned ideally to support your customer base at maximum value to your customers and for you.
- Cost considerations– As you think about how to reduce your cost base, re-evaluating your supply chain network is a ‘must’. Most likely, you can save a few pennies here or there but for substantial savings, you might need to review your infrastructure.
- Customer demands– In today’s Amazonian environment, customer demands are ever-increasing. Is your supply chain network positioned to support your customers’ needs, delivery points and sales growth expectations?
- Space constraints – As you start to think about space constraints, it might be an opportune time to re-evaluate your supply chain network. First, do you know how much space is needed to support your growth plans (and where)? Do you have the opportunity to maximize space? Or should you re-position?
- Insourcing/ outsourcing– As you think about whether you should insource, outsource (ex. 3PL) or utilize a combination of both, it is definitely the opportune time to evaluate your supply chain network and logistics infrastructure.
- Supply chain partners – If you are re-evaluating key supply chain partners, it is likely a good time to do a quick assessment of your supply chain network.
We have found that a supply chain network assessment can be valuable even if you decide not to change a thing. Performing a quick review of customers, suppliers, operations and logistics infrastructure from a customer, cost and cash flow viewpoint can provide substantial benefit every so often. Contact us if you’d like to discuss further.