“Coming together is a beginning, staying together is progress, and working together is success.” Henry Ford
The Rising Value of Partnerships
Partnerships have been around for a while. But now they’re a necessity rather than an option. That’s because disruptions stressed global supply chains and strained them like never before.
Some, like Maersk CEO, Soren Skou, say supply chains are “bursting at the seams.”
So, what can you do?
As you compete in today’s market, you’ll find uncertainty and chaos raise the stakes for survival. To say that today’s environment is difficult is an understatement.
Surmounting supply chain challenges by yourself handicaps you. That’s a given. On the other hand, resolving supply chain issues with a partner markedly increases your success.
When you work independently, the odds are against you. But working with a partner puts the odds in your favor. Partnerships are the new silver bullet. This blog post features five things you can do to succeed and profit against the odds.
With that background in mind, let’s get started.
#1 Overcome Unrelenting Supply Chain Disruptions Swiftly and Surely with Partnerships
Turn to your left, then turn to your right. The chances are you’ll see a supply chain disruption looming or already in progress. That’s not an exaggeration at all. One of your primary tasks is to prepare your business to withstand all types of disruptions.
Their impact may be small or huge. They may be transitory or long-term. And they may be expected or unexpected. The best way to guard your company against disruptions is with a partnership.
In finding a suitable partner, you should look for an experienced 3PL. You need a seasoned partner who can track, analyze, and report changes to your plans. They can tell you swiftly and surely what your next steps should be.
In short, you can cut through the obstacles thrown your way with a dependable 3PL partner. When you rely on a partner, you can leverage its strengths to give you welcome relief.
#2 Conquer Chaos Caused by Increasing Uncertainty
Uncertainty and supply chains have always gone hand-in-hand. With uncertainty is increasing at full throttle, which takes uncertainty to a new level. To gain more certainty in planning and execution, you must possess a robust supply chain risk management (SCRM) plan.
As you develop a SCRM plan, however, you might find it’s not that simple. In fact, depending on the complexity of your supply chain, you might find it complicated,. To simplify matters, you could develop a SCRM with an experienced 3PL.
Their understanding of risk management can guide your SCRM plan. You can benefit from one-off events, like Hurricane Ida, by applying lessons learned. That will make recovery faster and easier. You can weather disruptions with greater certainty and composure by working with a 3PL.
#3 Master Globalization’s Adverse Effects Faster and Easier with Partnerships
Some have declared the “End of Globalization” has arrived. They cite a re-ordering of international trade agreements due to trade wars. But be careful not to buy into that theory.
As it stands, China remains the world’s workhorse. Although some companies have shifted sourcing from China, globalization persists. But sourcing is not as concentrated. As near-shoring and on-shoring increase, that will boost supply chain diversification.
Thus, you must be alert to globalization’s costs and opportunities. Today, sourcing is fluid. So, you must pay more attention to international laws and regulations. Compliance will become more complicated, not less.
Import-export laws require diligence in tracking changes. By partnering with a 3PL, you’ll benefit from its specialists. They’ll dig into the messy details of regulations to ensure compliance.
A qualified 3PL can also help you mitigate and avoid the adverse effects of regulatory change. It can help you profit from these changes. So, it pays to establish a long-term partnership in today’s chaotic times.
#4 Dominate the New Normal through Agility and Resilience
These are the new watchwords of global supply chain management. You need both to succeed amid the current unpredictability. We are past Murphy’s Law that states: “If anything can go wrong, it will go wrong.” We are in the middle of recovering from the disruptive effects of Covid-19.
Now is the ideal time to seek a 3PL partner to help you re-build your supply chains. An expert 3PL can help you build agility and resilience into your supply chain. That would prepare you for the short- and long-term events that may batter your supply chain.
A core capability of 3PLs is to build agile and resilient supply chains. It’s what’s they do every day. It only makes sense to look for a partner when seeking to build agility and resilience.
Building agility and resilience go beyond outsourcing. When outsourcing, you’re not handing over the reins to your supply chain. Rather, you’re entering a long-term partnership. You want a partnership informed by your needs and your partner’s expertise and experience.
#5 Achieve Competitive Advantage Confidently and Consistently Despite the Odds
Companies that beat their competitors have strong, long-term partnerships. We wrote a blog post about this: “Gartner’s Master Supply Chain Companies.” In it, we pointed out one differentiator of supply chain masters—they all had partnerships.
It’s risky for you to work alone today. Today’s problems are more complex, more difficult, and more deep-rooted. So, you need special expertise and experience to resolve these problems.
How do you form a long-term relationship with the right partner?
Look for a company that shares your vision, your values, and your goals. Teams with unity of purpose and a unified approach get to the end state faster.
In particular, look for a partner that works cooperatively. Doing so will foster collaboration and coordination, leading to cohesive teamwork.
Working collaboratively rather than at cross purposes enhances trust. Collaboration allows teams to solve problems faster and with much less friction.
When you take the time to find the right partner, you will build competitive advantage.
Stepping into the Future with a Long-Term Partnership
The future is here, and it’s a new world called the New Normal. In today’s world, old solutions don’t work for today’s problems. Old solutions worked fine when things were simpler, more stable. In contrast, today’s world is more complex and more complicated.
To succeed in this market, you need a fresh approach. Today’s problems call for new solutions. The best way to tackle today’s problems is through partnerships. Companies with leading supply chains have shown us that approach works.
Like Gartner’s supply chain masters, American Global Logistics tackles problems through partnerships. Our history of collaboration proves that approach works.
It’s how we do business, and it reflects the DNA of our company. Talk to our partners. They’ll tell you our collaborative approach is key to solving the thorniest problems.
Contact us to find out how we find new solutions to today’s problems.