The roster of supply chain providers hoping to score a piece of your business is extensive. You’ll find that numerous companies, capable or not, want to compete for your supply chain dollars and will go to great lengths to win you over. Many will trot out their best dog and pony shows, provide dazzling presentations, and promise a victorious outcome.
Be careful not to mistake show for substance. Arm yourself with a well-defined search process and identify specific requirements that your company must address when you partner with a supply chain solutions provider.
The Typical Game Plan
Many companies follow a four-step process to find a vendor:
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Contact several providers and ask for a demo
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Ask to meet the local support team
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Negotiate the purchase price
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Select the partner and solution based on Step 3
This traditional approach can result in big mistakes and higher overall costs in the long run. By taking a more strategic line of attack that addresses your immediate supply chain needs you’ll have a better chance at improving your bottom line.
Understand the Players
As you evaluate different solution offerings, it’s best to categorize supply chain providers in one of three ways:
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Assemblies—growing through acquisitions, these ‘assemblers’ collect solutions, invest little in product innovation, and provide disparate technology silos that are difficult to integrate with other products.
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Suites—solution providers that acquire and develop various in-house applications that deliver a grouping of supply chain components are ‘suites providers.’ You may be able to achieve a middleware strategy, but not a comprehensive supply chain strategy.
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Platform—these providers optimize a supply chain and fully leverage all of a company’s assets—people, space, inventory and equipment. A supply chain platform harnesses information, assets and capabilities to help companies use their supply chains as a strategic advantage.
Platform providers must make considerable research and development investments year after year. But a true supply chain platform provider, such as Manhattan Associates, understands the value in this commitment.
Ten Things Your Team Should Tackle
Once you understand the types of players in the game, how do you choose the best partner for your organization? Do your legwork and use this effective checklist:
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Define business problems and goals. Get a clear picture of your supply chain challenges and corporate goals to recognize the best solution and vendor to meet these requirements.
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Organize your search process and set search criteria. It’s better to take extra time upfront, and possibly hire an independent third-party consultant to help evaluate your business and determine what is most important to you.
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Assemble a cross-functional team. Organize a team that runs beyond your IT group to include distribution, logistics, customer service and executive management.
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Determine if your supply chain is a competitive tool. Many companies use theirs to gain a competitive edge, winning more new contracts with greater efficiencies, productivity and cost effectiveness to their trading partners.
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Review the vendor’s customer portfolio. What industries does it serve and how likely will the provider understand your needs? Leverage a supply chain vendor with a wide breadth of experience in your industry.
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Evaluate the supply chain solutions provider’s vision—if there is one! Does the company have a long-term strategic plan and product strategy? Team with a partner that has an eye on the future with innovative and invested research and development capabilities.
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Understand the true costs involved. Support, service, upgrades and custom modifications can add up. Spend a little more upfront to lower your support costs and to obtain solutions with built-in features you can “grow” into.
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Leverage current IT investments and standardize processes. Find out how vendors can utilize previous technology investments, and create uniform business processes across the enterprise with systems acquired through mergers and acquisitions.
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Decide how fast you need to be up and running. It typically takes 4-12 months to integrate a supply chain solution because it touches every aspect of your business—from distribution, transportation and customer service, to accounting. The more you’ve prioritized your requirements, the faster it can go.
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Make sure the solution aligns with your business. Modifications can be costly. Find a vendor that offers solutions that match your organization’s business processes, delivers the functionality you need, and requires few, if any, changes.
Reaching your Goal
The difference between making a good and a great supply chain partnership means thinking beyond the presentations and demos.
Don’t settle for a one-size-fits-all offering. Find a solutions provider that demonstrates how it can cost-effectively address and support your company’s individual needs—both now and in the future.