Most companies will inevitably reach a point where they are unable to fully resolve their operational challenges by themselves. For smaller wholesalers and distribution companies in particular, the hiring of third-party consultants and specialized service professionals is no longer a luxury. Over the past few years, such professional partnerships have become an essential part of doing business. 

 

There are two main reasons why outsourcing is more critical today than ever before.

 

As consumers demand increasingly personalized, real-time experiences, mass retailers are turning their supply chains into well-oiled machines. When member businesses step outside of performance standards, they incur chargebacks. Many smaller wholesalers and distribution companies are finding it difficult to keep up with the growing list of rigorous performance standards, let alone stand out among a crowded field of competitors. This is putting obvious pressure on smaller suppliers to run agile, cutting-edge operations and data-driven processes. 

 

At the same time, business decision-making has become more complex across the board. It's not just the decision of what technology to use or to how best to comply with a growing burden of requirements from distributor finance arrangements. Even decisions such as who to hire or fire and how to best organize your staff to enhance workflows, involve countless variables that simply didn't exist even five to ten years ago.

 

Deliberately outsourcing select portions of your operations and strategic planning, puts your leadership team back in the driver's seat with the space, insight, and tools they need to steer the business to success. With a smaller wholesale or distribution business, hiring a consultant or an outside team of professionals, may seem like an expensive proposition. Leaders may even feel that it would force them to give up control over certain parts of the company. 

 

A good consultant, however, doesn’t come in and tell you how to run your business. A good third-party professional services provider won't also make independent decisions on your behalf unless you give them explicit permission to do so. Instead, these professionals become partners with your company. They work together with your in-house staff to improve your business. The cost savings and increased operational efficiency that results will pay for the added expense of hiring these outside experts many times over. 

 

The Benefits of Outsourcing

 

There are several benefits to outsourcing some of your operations and planning to third-party professionals. Here are three very important ones:

 

See the Bigger Picture

Because they are looking at your organization as outsiders, a third-party team of experts will have a different, more objective view of your business operations. This means they are best positioned to recognize both the obstacles and opportunities that you may not be aware of. 

 

For instance, if your company is experiencing a large number of retail chargebacks, a third-party audit will reveal where and when you are getting penalized. Perhaps you need to upgrade your inventory control or communication systems. Maybe certain business partnerships need to be redefined or enhanced. Chargebacks are usually indicative of company-wide operational issues, but the sources of such issues are very often missed by the companies themselves. 

 

Optimize Your Operational Performance

Awareness is only the first step, however. It must be coupled with proven solutions. Professional advisors and third-party teams are usually experienced experts in a specific field and have likely worked on numerous past projects that mirror your situation. They are already well-versed in the systems and processes that would make the most sense for your organization. They will know how best to streamline company processes in order to reduce costs, improve quality and free up resources that could be directed elsewhere. 

 

For instance, at CRL Advisory, we work with wholesalers and distributors to improve their deduction management systems. We know that many companies are leaving money on the table-- money that is taking a big bite out of their profit margins. By simply changing their approach, businesses can successfully dispute and reclaim those deductions.

 

Get Growing

Third-party professionals, such as supply chain and operational management consultants can help your business implement new strategies and systems that improve efficiency, and foster growth, The goal is to ultimately build up a sustainable, scalable organization. 

 

One of the most significant difficulties facing many local wholesale companies is in choosing the right technology to power their operations. Successful operational and supply chain management always comes down to data. The companies that can best record, analyze and act on all the information they are generating at any given moment are the ones that will succeed.  

 

Handing your software search and implementation to a third-party consultant will help to ensure you're using the most appropriate systems for your particular circumstances. Having a versatile and robust software system is crucial to operational success. Enterprise Resource Planning (ERP) solutions, combined with other software systems, enable all your departments to work together to record, analyze and act on inventory data in real-time as efficiently and effectively as possible. This will best position your company as a truly viable option among clients and business partners. 

 

Ready to tap into a professionally trained team of operations, supply chain, and deduction management specialists with decades of combined industry experience? Our cross-functional team of professionals can work along side your in-house leaders and management teams to expand your operations, respond to new vendor requirements, or upgrade to the latest technologies. 

 

For more on how you can generate profits, visit www.crladvisory.com or call 212-947-0300