Supply Chain Management

What are the advantages of hiring a supply chain management company?


What are the advantages of hiring a supply chain management company?

Table of Contents

Today, global supply chains are becoming increasingly complicated. This is making a data-driven approach to managing the supply chain an essentiality for businesses who wish to remain competitive.

Supply chain management that is data-driven provides you with greater visibility from end to end, allowing better monitoring of information, goods and services from both procurement and manufacturing & delivery.

That said, data isn’t the only thing driving effective supply chain management at the moment. There are other critical factors at play, such as having a solid vendor / supplier relationship, airtight cost control, and working with an established logistics partner than can provide you with innovative supply chain technology as well.

In this article, we’re going to look at the benefits of using supply chain management services and how it can significantly improve your business.

Seamless collaboration

The flow of information between partners in the supply chain is among some of the biggest challenges for businesses today. It is estimated that some 76% of businesses do not have an automated flow of information across their supply chain in place, and half of them say that information often arrives fragmented thus resulting in lost opportunity as a result.

Working with a supply chain management company can help to prevent this. You might imagine that adding a third-party into the mix will only confuse things, but when executed properly it is quite the contrary. Reputable supply chain management companies that integrate software solutions can remove any bottlenecks and ensure that there is seamless sharing of information throughout. This in turn will provide all parties involved with a ‘big-picture’ view of the supply chain, end to end.

With such an improved access to data, decision makers will have all of the information that they need, in the relevant context, to take the appropriate action!

Enhanced quality control

Another advantage to working with a supply chain management company is quality control. Product sourcing and supply chain management agencies can ensure that you have greater control over both your direct suppliers, and their suppliers as well. They can conduct regular audits and request documentation thus verifying suppliers’ compliance, and so much more, such as:

Ensuring on-time delivery
Reducing scrap rates and reworks
Improving final product quality
Reducing time for complaint resolutions
Your supply chain management company can analyse performance data and partner with the best- performing vendors and suppliers in order to maintain the very strictest quality control.

Even greater efficiency

Product sourcing and supply chain management companies rely on real-time data as to the availability of various raw materials and any potential manufacturing delays. This allows you to implement reactive backup plans, for example: sourcing certain materials from an alternative supplier.

With such smart automation solutions available, it results in far higher efficiency all around. It is the job of the supply chain manager to make sure that every single aspect of your logistics solutions is airtight.

And indeed with fewer delays you’ll be providing a greater, more positive customer experience which is great for bolstering your reputation.

Keep up with increased demand

The best supply chain managers will have access to real-time data which can enable them to react to changes in demand, on the fly. So, if for example customer sales were to increase by 5-10% in a week, your SCM company would be able to order more products in response.

Better shipping optimisation

Think of hiring a supply chain management company like hiring an accountant. You are hiring a specialist in a particular field that is otherwise complicated and time-consuming. So, rather than waste your time trying to navigate the complexities of logistics – particularly when sourcing products from Asia – you can focus on your other duties and leave the details to the professionals.

Today, more and more customers are expecting their goods faster and for less. As such, having the finest shipping optimisation, even more so when it comes to the last mile delivery, is an essentiality.

Reduced overheads and increased savings

A supply chain management company can provide you with more accurate demand predictions. This can help to reduce the overheads involved with storing slow-moving inventory, for example-and in the same breath, you can start stocking higher-velocity inventory and start making more money as a result.

Further to that, a supply chain management company can take care of your warehousing requirements as part of their service. With better optimised warehouse layouts and advanced inventory management systems, your business can save an attractive amount of time, money, and labour.

Better risk mitigation

Supply chain management companies are always analysing the big picture, revealing any potential risks and mitigating them accordingly. With multiple backup plans in place, your business will be much more versatile and better able to respond to unexpected circumstances.

Effectively sourcing products from Asia and overseas

There are many advantages to sourcing products from Asia and overseas, but without the proper experience or connections in place, it can be difficult for buyers to tap into. Fortunately, with a product sourcing and supply chain management company on board, you can leverage their expertise and reap the rewards.

Not only can this grant you access to a greater variety of suppliers, but they can ensure that your logistics is well-optimised and that all of your required materials and products make it to where they need to be on time and with as little cost to your business as possible.


Ultimately, working with a third-party supply chain management is an effective way of making your life easier. Rather than build an-house team to handle these requirements, or take them on yourself, you can simply outsource them to a partner that thrives on it. That, coupled with all of the amazing benefits listed above (and more), is precisely why you should be giving it some serious thought.

Your competitors are doing it; don’t allow yourself to be left behind.