How Resilient Are Your Business Partners?Article by Lisa Anderson, January 26, 2019
As we kick off our new series “The Resilient Supply Chain”, we are thinking about resiliency from all angles that will impact success. One of the first that pops to mind is the resilience of your business partners. You and your company could be 100% proactive and resilient; however, if your business partners aren’t, you’ll still crash and burn!
In thinking about recent client examples of disruptions and volatility, there are many! Here are a few, along with some questions to think about:
- Tariffs started impacting suppliers. If/when this happens to you, do you know broadly how to handle it?
- Capacity shortages starting to increase throughout the supply chain. This has been especially true in aerospace. Do you know in advance and have backup plans and partners? Or, are you surprised when this occurs?
- Sales revenues increased more than expected. A bit of unexpected success can be a nice lift but it also can create several unintended consequences to keep service levels intact. Are you proactively communicating with your supply chain partners? And, how about your trusted advisors, such as your bank?
- Transportation shortages have been creating havoc. The conversation is no longer about price and saving pennies, it is about finding trucks. Moreover, the key question is whether you will get the truck or whether your competitor will. Are you the preferable partner to do business with?
- Shifts in e-commerce and direct to customer have been changing industries. What are you doing to stay on top of these trends and share them with your business partners?
- New technologies are creating disruption, obsoleting industries and bringing profit opportunities to the surface. Do you have a plan? Are you talking with technology trusted advisors, as well as finding ways to collaborate with supply chain partners to find the win-win?
- And, what about your negotiations with suppliers? According to APICS 2018 International Conference speakers from companies like Cisco, AkzoNobel, McDonald’s and NASA, it is no longer about negotiation. It is about win-win collaboration.
This list could go on and on. At our most recent Harvey Mudd executive roundtable, the CEOs discussed how culture (with employees and business partners) was the key to growth. Making sure you are partnered with the “right” business partners who share your goals and are resilient might just make or break your success.
It pays to give it some thought!