Elements of a Successful Material and Supply Chain Management Program: Part V: Program Implementation

July 27, 2021

In our sixth and final part of our series on setting up a successful supply chain program we point out factors to help determine which parts of the process you’ll do yourself versus parts you may consider outsourcing.

Part VI: Insourcing vs. Outsourcing Considerations

As you build your supply chain program, you may consider whether it is better to build and deploy the supply chain yourself or outsource to an expert. Below are the key factors that should be considered:

Define Gaiting Concerns and Evaluate Your Internal Capabilities

What are the capital requirements of this program, and what are our limitations?
What space is required, and what space is available in our facilities?
How will materials get into the hands of the installers, and how are we positioned to execute this?
What system requirements are needed, and how do our current systems match up?
What expertise is required to manage this project, and what is the impact on the current team?

Evaluate Outsourced Capabilities

If the above questions identify several hurdles, outsourcing and working with a provider of supply chain services would be the right approach; however, choosing the right partner will be critical to the success of the project. You will want a partner that understands what your requirements are and what you value the most. This will ensure that are provided a customized supply chain solution that addresses all your needs.

You will want to ensure that you evaluate the capabilities of the potential partner, specifically regarding the key functional areas outlined above: Program Management, Catalog Management, Procurement, Warehouse Operations and Implementation. Be sure that you understand their experience in executing projects with a similar scope of services and requirements to your project.

KGPCo has operated successful supply chain and material management programs for over four decades. Our strong supplier relationships, vast inventory and advanced nationwide distribution network means we can deliver when and where our customers need us. Learn more.