Qualities of a Successful Outsourcing Partner
Over the course of the next few weeks I will outline the concerns most often raised by new customers when they are preparing to outsource a product or service with us. We do a variety of back room operations for medical device customers. My goal is to provide the reader with some of the qualities companies seek when looking for a successful outsourcing supply chain management partner and to provide some guidance in their outsourcing process.
1. Aligned Strategies:
There are many companies that can supply services; most companies are looking for the proper fit. It is important to work with a company that has a sound strategy that is being implemented by a strong management team.
We had one customer who selected a excellent contract manufacturer to do kitting for them. While the company’s expertise was in contract manufacturing they did not possess a World Class Third Party Logistics (3PL) Warehouse Management System and were not considered a top 3PL provider. They were able to build the kits but were not able to inventory or distribute them with ease. Their strategy was as a contract manufacturer not a kit assembler and distributor of products. The contract manufacture’s strategy for the engineering and manufacturing of medical devices was outstanding. Their ability to build kits and distribute them was not their core competency.
Up next: Having a strong metrics focused management team...