Blog

Three basic considerations when choosing your ideal business partner

Blog

In the coming  months, manufacturers and buyers of various goods will be forced to restructure their supply chains, and to choose new business partners to respond to a potential looming crisis. 

Due to the current situation, it seems that talking about supply chains has become fashionable but in maxiaNET’s way of thinking, this is a topic that matters always and across all industries. Whether your role is as a manufacturer, distributor, retailer, or consumer, we should be informed about what is happening with the distribution of products around the world.

Therefore, we also think it is very important to review three aspects when incorporating a new partner into the supply chain:

  • Interest: It is vital that the new partner is interested in collaborating in the entire chain: understanding that it is part of a whole system. If not, it should not be there. The chain works or breaks depending on all links sharing the same vision and work philosophy. 
  • Capital: A potential partner needs to have access to resources to be able to grow and respond to the different needs in the supply chain. If your partner lacks resources, it will jeopardize the resilience of the whole supply chain
  • Knowledge: Your new partner needs to have industry knowledge and have a clear understanding of their processes. If your new partner doesn´t have enough expertise, it can become a liability.

Now, it’s hard to close the door on companies that don’t meet all three conditions but do show a strong interest or solid industry knowledge. Unfortunately, since the rest of the supply chain is counting on them, it is not enough to show interest alone, work has to be done to fix the weak spots. 

In our view, if there is a weak link in the chain, it is important to strengthen it or give it options to continue growing. Although there are different strategies to achieve this, we focus on two in particular, which have given us good results.

The first is to invest in them: give them access to capital if they lack economic resources. Or if their weak point is a lack of expertise, help them incorporate professionals with the required knowledge into their teams. Perhaps provide them with tools to quickly obtain the knowledge they need. The idea is that the investment should be used to strengthen their position in the chain.

The second is to have a backup in the same place where this partner is: instead of forcing them to reach goals that are not realistic at the moment, you place a partner as a backup to perform the same functions, but without there being so much pressure on just one of them. This way you give them the freedom to establish themselves, but with the assurance that there will be someone else to take over the role if they fail.

At the end of the day, it is of utter importance to know that you can count on your partners.

Leave a Reply

We take processes apart, rethink, rebuild, and deliver them back working smarter than ever before.
en_US