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Do you Believe These 4 Supply-Chain Myths? 11.27.2018 | Morgan Wiedmann

Do you Believe These 4 Supply-Chain Myths?

Red Bull didn’t give you wings, when you walked outside with wet hair during winter you didn’t catch pneumonia and when you swam minutes after eating you were fine.

Everyone knows a good myth or two, especially that one about the red ring in the swimming pool, which is one that I recently learned myself, is not true after believing my grandmother for over two decades.

The fact of the matter is there are myths all around us and the relocation industry’s supply chain management is no different.

In the mobility industry, with so many moving parts, having a professional, experienced, and quality supply chain is vital. A detailed sourcing plan and regular review of your supply chain each year ensures your mobility program avoids the risk of unhappy employees, additional costs and even potential liability.

A key component of avoiding these risks is to ensure you perform some basic due diligence before selecting your providers. This is even more important when it comes to services such as household goods or destination providers, where you have a wide range of providers from green amateurs to longtime professionals. At a minimum you want to make sure to partner with respected companies, research these providers and ask as many questions as possible, and analyze their metrics annually.

This is where partnering with an experienced Relocation Management Company is beneficial. Weichert’s dedicated Supply Chain team is responsible for understanding the potential risks involved and for managing the company’s global Supply Chain.

“We conduct a DSP training/accreditation program to encompass processes, service expectations, compliance and data updates directly into our single-system mobility management platform, MyWIN,” explains Mary DeVeau, Director, Global Supply Chain. “This allows us to meet the service delivery needs of our clients in all of their global locations.”

There are common misconceptions around Mobility Supply Chain Risks and we are here to help solve these four myths with our best practices to avoid these.

Myth #1 – “I trust our supplier partners, we have great relationships with them –they will tell us if anything is happening that we should know about.”

A company goes on strike, they’re underemployed; these are factors that you usually find out about after the fact. Imagine moving your family from Boston to Orlando and your household goods company goes on strike….your truck is left in Virginia….now what?

Companies are not going to warn you of going on strike, or other situations that most of the time they cannot predict.

Through our annual Supply Chain Risk Assessment report we analyze, rate, assess financial risk and provide recommendations for our supplier partners.

Mary shares that one of our companies best practice tips is to have two provider options for each market.  “It gives a little bit more flexibility and peace of mind; for you and your relocating employees.”

Myth #2 – “We’re fine, we’ve worked with this supplier for 10 years and never had a problem.”

Companies and people change over time, not to mention the world we live in – think back 10 years ago and all the technology advancements that have been made since then. You need providers who are committed to adapting to change.

That is another benefit of our annual Supply Chain Risk Assessment, in which we receive the most up-to-date feedback on supplier performance by surveying our assignees.

The company we partnered with 10 years ago could change greatly over the years with new employment, new locations and new management. Our surveys and feedback help us minimize risks and ensure trusted partnerships.

Myth #3 –“I’ve heard of that company before, so they must be good.”

Just because you may have heard of the company before, do you really know the company? Do you know their values and what others are saying about their services?

Kyriako (Rocko) Bouris, Vice President, Global Transportation Solutions shares a few best practices on searching for supply-chain partners.

  • Ask the right questions: Start with the basics such as, how long have they been in business, and can you speak to references, and move to the more complex questions such as, how do they handle issues, and how do they ensure compliance?
  • Do your research: Everything is being reviewed online these days and this is an easy way to leverage research on a potential business partner.
  • Ask industry peers: Ask your colleagues, post in a LinkedIn group, or check the industry associations.
  • Trust an Expert: Use an RMC. This is particularly helpful if you have a small to medium size mobility program where you might not have visibility into bigger, broader issues.

Focus on the quality of that company and find out if the company takes the necessary steps to ensure your relocating employees’ satisfaction.

Myth #4 – “Why pay more if we can get the same for less…let’s save some money.”

Ever heard the phrase “you get what you pay for”?  Yes, the price may seem better in the beginning but when it comes to service delivery, chances are you may have to pay more in the long run for additional services, claims, or unhappy employees, leaving your company to spend more money out of pocket in the end. While this isn’t always the case, in a service industry, cheaper doesn’t always result in the same level of service.

In our recent blog post, 5 Signs your Household Goods Supplier Could be in Trouble, Rocko shares more insight on how crucial it is to spend that extra dollar on a trusted professional.

Relocating your mobile workforce is a significant investment in time, effort, and money.  Selecting the right providers, to ensure you and your employees receive quality, timely, and cost effective services, is a key component of your mobility program and may save you a few headaches down the road.

 

Some of the information in this blog was provided by, Joe Ptak –OMNIA Partners

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Written by Morgan Wiedmann

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Morgan Wiedmann is the Content Specialist in Weichert’s Marketing group. Leveraging over five years of experience in writing and marketing, she develops content for the company’s website and social media channels as well as for client and colleague communications. Morgan graduated Magna Cum Laude with a degree in Journalism from Suffolk University in Boston.

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