Outsourcing products and services may be a popular option among businesses for saving time and money but it can come with some pitfalls. Certainly in the early days, companies may find that they make mistakes in the outsourcing process.
Here are some of the mistakes that almost everyone makes when outsourcing for the first time.
Breakdowns in communication
Companies that are new to outsourcing will be used to working with their own employees alone. These are people who are well versed in company processes and values. When companies start to outsource their products and services, they are handing them to businesses that may not have the same processes and values. As such, communication needs to be a big to help build relationships with supplier networks and ensure that everyone is kept up to date with each others needs. However, businesses new to outsourcing often miss details or do not communicate often enough with their supplier network, leading to mistakes being made.
Focussing too much on cost
Reducing cost to the business is often one of the main goals when a company decides to outsource. However, sometimes companies focus too heavily on the rates they are paying a company and lose sight of the quality of the end product they would be receiving. Research suppliers thoroughly before striking up a deal with them. It's important to get a balance between quality and price so that your customers continue to receive the service they are used to.
Attempting to micro-manage
While it is important to ensure the company you outsource to understands your goals and exactly what you need from them, you should not take full control over what they do for you. Allow space for their ideas, let them explain if something isn't working and listen to their suggestions for improvement. This could add value to their service.
With these mistakes, projects often get delayed, product deliveries are slowed and customer satisfaction can take a bit of a hit. This is something that many businesses learn the hard way. Having read about these problems, perhaps your business can better safeguard itself against them.
If you want help avoiding these first time pitfalls, contact our helpful team. We can talk you through everything you need to know and see other ways we can help you on your outsourcing and supply chain.