Supply Chain Diversity
The constant push forward in the world of Supply Chain is what keeps it alive. This particular field of business requires the upmost drive because there are always to improve and compete. Whether it be in forecasting, transportation costs, or operation management, the way a supply chain functions can always be updated or remodeled for the better. In this article, I am going to express my thoughts on how any supply chain driven firm can improve their diversification and why they should do it. In my opinion, I feel as if there is truly little known in regard to how strides in this area can be made. More importantly, business owners want the answer to the question: “Why?”
Within my internship’s network at Growe LLC, we solely work with 3PLs. That being said, I am always in contact with different shippers and consumer good companies looking for their “perfect fit” fulfillment partner. To clarify, there absolutely are 3PLs that mold their business models around performing for a particular type of shipper, and they usually are extremely successful. However, spicing up your inventory is always something well worth doing and there are some pretty big points as to why you should.
Supplier diversity is best defined as a firm’s ability to divvy and diversify its clients. The easiest way to describe this model is by using nothing other than my best friend, the 3PL. Lets say there is a 3PL in Atlanta that has been working with and focussing their business on subscription box related goods for a while now. They have great margins and amazing long-term relationships with their clients, but are missing a flow of new incoming business. There could be multiple reasons that this is happening but the one that comes up the most is the fact that young shippers looking for a partner at the moment see this 3PL and think they ONLY specialize in sub boxes. This simply turns away new business and draws a circle of limitations around this aspiring 3PL partner. What is the solution to this common problem you may ask...? Supplier Diversity! What is wrong with exploring new windows and opening up doors that lead to a new type of inflowing product? What is stopping this 3PL from helping a flip flop company with its distribution? Not only does this add healthy challenges to employees but it also expands a network in dire need of new direction. Diversity in supply chain is so beautiful because bringing two completely different products into the same warehouse to operate simultaneously with one another cannot be done in any other field! Next thing you know, this Atlanta 3PL is booming with new business because of new relationships that were made. Its employees are able to come into work with a challenging, NEW task every day and attack the week. Diversity seems so complex but really is so simple.
Lastly, the most under appreciated factor of a productive supply chain is the people and employees that help it to run. Keeping people happy and wanting to work is a very difficult thing to accomplish. A firm can have the most genius operation and idea of all time, but without able and willing employees, it means nothing. Diversification can help with this as well. Motivation for laborers to succeed in their jobs comes from them wanting to defeat a challenge. Bringing in new attack plans and new kinds of business allows them to use their minds and put effort into every little detail needed. Never look over the people that matter most.
Now that this piece has come to an end, I hope everyone sees what I see in diversity. I hope you see the beauty in it. I hope you push yourself as a student or operator to welcome all kinds of business with open arms because I promise it will shoot your company to the Moon. Always remember, opposites attract.
