Outsourcing is a key strategy for many a global company. The costs associated with sourcing suppliers, negotiating terms and conditions, and eventually signing what amounts to a successful agreement require money, time, and resources.
I'm amazed by how often companies walk away from the relationship once the agreement is signed. You've probably heard the saying about not leaving money on the table during negotiations. But if you're not careful, you could find yourself leaving larger sums of money on the table following a signed deal.
Growing an entrepreneurial supply chain requires ongoing investment; however, the payoff is well worth the effort. Below are five key ways to introduce the process:
Accountability for performance. Begin the entrepreneurial process by creating a baseline for your suppliers. Develop performance criteria and delivering on expected milestones, as well as performance incentives for exceeding established goals. Don't leave it up to your suppliers to read your mind or guess at what your expectations might look like. Focus on setting up your partners to succeed. Providing the right environment becomes the launch point for supplier innovation.