Supply Chain Consultant: What to Look For Before Hiring

With the way a supply chain is constantly evolving, it can help to bring in a supply chain consultant to take a look at your operations to see where improvements can be made. If you decide to bring a consultant in, how do you know whether or not that person has a good eye for process improvement?

Anyone with a supply chain background can call themselves a consultant but there are a variety of skill and experience levels. One consultant's background may align perfectly with your company where another consultant could have supply chain experience in a completely different industry, which could make a world of difference in the advice they give.

In this blog post, we'll take a look at what makes a good supply chain consultant.

Proven Project Management Record

A good consultant should have a good track record and should be able to prove it. Heading a supply chain project likely means a lot of cross-functional work, which is a major positive as the supply chain is made up of many different departments. A supply chain consultant could interact with company associates from:

The warehouse
The transportation department
Inventory/demand planners
The finance department

All in the same day. People from each of these departments are going to have their own departments in mind during cross-functional projects and a good supply chain consultant will be able to stick to the big picture instead of bending to meet internal demands from various departments. A good supply chain consultant is someone who has experience hitting budget goals, meeting deadlines and outperforming expectations. This is what a company should look for when considering a supply chain consultant.

Experience Across the Supply Chain

As mentioned above, there are many departments involved in the supply chain. Good supply chain consultants should have direct experience across multiple areas of the supply chain, not specialized in one area such as freight logistics. Someone who strictly has a logistics background may not understand why a demand planner is making the decisions they're making because they have no experience as a demand planner. While it is unlikely that a consultant will have experience in every area of the supply chain, a good consultant should have a background in more than one area. Varied experience throughout the supply chain leads to a consultant thinking from more than one point of view, which is one of the quickest ways to find optimal solutions.

Tech Knowledge

One of the biggest reasons that supply chains evolve so quickly is due to the advancement in technology. New tech can speed up processes or even remove human error completely if used correctly but that's the key – finding someone who can use new technology correctly. A company can invest piles of money into the newest information systems and applications but if no one under their roof understands how to get the most out of it, then is that really maximizing your technology ROI? A good supply chain consultant will be able to adapt to new technologies and take charge when it comes time to implement a new software system or application. A supply chain consultant doesn't need to have a background in IT but a solid understanding of how different types of technology can help a company would be extremely helpful.

Understanding of Your Company and Your Industry

If you're looking for a supply chain consultant to evaluate your company, odds are they won't know the ins and outs of how you do things. It would be smart to find a consultant that has a background in the same industry though. The learning curve will be much quicker because you won't need to invest time in helping the consultant understand that some processes are specific to your industry. Maybe your company is in a niche industry and there aren't many people available who have experience in your industry – what do you do then? The best bet is to find someone with experience in a parallel industry. If your company is in a specialized manufacturing industry, the right consultant for you should have some sort of manufacturing supply chain experience.

Cost-to-Serve Knowledge

Cost-to-serve is where finding a supply chain consultant who has experience in your industry will help immensely. When a consultant reviews your processes, there are going to be areas that they are going to recommend changes. These changes are going to affect the company's bottom line either positively or negatively. A one-size-fits-all approach to supply chain processes will never work because there are too many moving parts and eventually, something will go overlooked. A good supply chain consultant will be able to make decisions toimprove the profitability. Finding the areas where directly improving profitability or improving processes that lead up to the final product is a crucial skill that a good supply chain consultant will possess.

Final Thoughts

Supply chain consultants can help companies improve their processes and bottom lines by having an outsider take a look at what they're doing and suggest some improvements. Good supply chain consultants should have:

A proven track record
A variety of supply chain experiences
Technical knowledge
An understanding of your company's industry
Cost-to-serve knowledge to improve your bottom line

FAQs

What should you look for in a supply chain consultant?

A strong supply chain consultant should have a proven project management record, broad experience across multiple parts of the supply chain, solid technology knowledge, industry familiarity, and cost-to-serve awareness. Those traits matter because supply chain work usually involves warehouse, transportation, planning, and finance teams, and the consultant has to balance all of them while keeping the company’s overall goals in view.

Why does cross-functional project management matter when hiring a supply chain consultant?

Cross-functional project management matters because supply chain projects usually affect several departments at once, including the warehouse, transportation, inventory or demand planning, and finance. A good supply chain consultant needs to stay focused on the big picture instead of being pulled in different directions by department-specific priorities. That ability helps keep projects on budget, on schedule, and aligned with business goals.

How much supply chain experience should a consultant have across different functions?

A consultant should have experience in more than one supply chain function, not just one specialty. Someone with only freight logistics experience, for example, may not understand the reasoning behind demand planning decisions. Broader experience helps a consultant evaluate problems from multiple viewpoints and identify better solutions across the full supply chain.

Why is technology knowledge important in a supply chain consultant?

Technology knowledge is important because modern supply chains change quickly as new software and systems improve speed and reduce human error. A supply chain consultant should understand how to implement and use technology effectively, even if they are not an IT specialist. Without that knowledge, a company may invest in new tools without getting the expected return.

Should a supply chain consultant have experience in your industry?

Yes, industry experience is valuable because it shortens the learning curve and reduces the time needed to explain industry-specific processes. If a consultant does not have direct experience in your exact industry, the next best option is someone with parallel industry experience, such as a manufacturing background for a specialized manufacturing company. That helps the consultant give more relevant advice.

What does cost-to-serve mean when evaluating a supply chain consultant?

Cost-to-serve means understanding how changes in supply chain processes affect profitability, either positively or negatively. A good supply chain consultant should be able to identify which process changes improve the bottom line and which ones add cost without enough benefit. This is why one-size-fits-all recommendations usually do not work well in supply chain operations.