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The global mobility industry is a remarkably close-knit community of industry professionals delivering a multitude of services around the world. While many of us within the industry operate on a global scale, our ability to do so relies heavily on partnering with local specialists who are able to act as an extension of our business and cover those locations we cannot reach directly and offer services beyond our internal capabilities. This raises an important question, how do we make sure that we have the right partnerships in place to represent us locally, delivering consistently high-quality service compliantly across diverse jurisdictions and at a cost that aligns with our business model?
When building an extensive network of trusted partners to support our operations and with such a vast pool of potential companies to choose from, how do you identify the “right” partner and integrate them into your network? How can you ensure that the partners you select are successful and able to integrate on a long-term basis with your organisation. Every company has their own strategy and process for sourcing and integrating their supply chain, but generally the following needs to be considered when selecting a partner:
- Internal strategy and direction of your company. How do you see your supply chain developing? What kind of partners are you looking for? What are your firms’ priorities and who are the decision makers? What is your selection criteria and are all stakeholders aligned on the criteria? How are they going to be scored? The above needs to be clear as failure to be aligned across the business may lead to unsuitable partners being selected and issues further down the line with service delivery, integration with your teams and financial challenges.
- The strength of your local market knowledge and that of your team and network in the area. For me word of mouth and using existing contacts is always the starting point and recommendation from trusted sources goes a long way in sourcing potential partners. However, if your local market knowledge is lacking, considerable research may be required to find potential options. While internet searches may provide many options, exploring industry associations will provide a more reliable source of information and typically links to accredited businesses. They may however miss some of the smaller up and coming firms who have not yet established themselves with those alliances and formal networks, so in depth research is always worth investing time in.
- Culture, attitude and fit with your business. Once a potential partner is identified we need to consider: who are their current clients, how do they handle adversity and case escalations, what is their local culture and corporate culture, how will they interact and integrate with your internal teams?
- Benchmarking, transparency and competitive pricing. What is your pricing strategy and how do they fit within that? Are their fees and service delivery capabilities matched. Are we expecting a white glove service for a budget fee and are our expectations realistic?
- Robust due diligence and background vetting practices. You may find the ideal partner who seems to tick all the boxes in terms of your list of criteria, but if they do not pass your vetting processes, the risk to your business and your client’s is not worth taking.
- The potential partner’s attitude to due diligence, vetting and onboarding processes. This can often provide a reflection of how the partner will be to work with in the future and can sometimes raise some red flags for both parties prior to any work commencing.
- Again, it is worth obtaining the feedback of others who already work with the potential partner. This may highlight red flags that enable you to avoid unexpected issues in the future.
Once it has been established that an identified organisation would be the right fit to join your network, like any relationship, you need to get to know each other and how each party works. There may be some difficulties to start with, so it is important to have clear Key Performance Indicators and clear expectations on both sides regarding communication, operating protocols, invoicing and payment terms. Open communication channels with operational teams and management, and escalation points for both sides will facilitate the “getting to know you” period.
The following suggestions should also help the integration of a new partner into your network:
- Test phase, training and integration. This needs to be monitored and involve all key stakeholders. Are they able to deliver what they promised? Does the services level match the cost? Do they have the level of expertise anticipated through the due diligence phase? How do they handle challenges in reality and how they gel with your team? Are there any unexpected surprises? It is important to remember this is a relationship and it works two ways. Be fair to your partners and make sure you provide clear KPIs, service scopes and protocols that are reviewed and agreed upon prior to work commencing. Have regular calls to discuss how things are going and address anything that doesn’t seem right on either side.
- Performance reviews. In the event things are not going as expected, have clear plans in place for any service delivery issues or ongoing problems. Implement fair measurements for recording results and reviews, and Performance Improvement Plans if required.
- Patience and flexibility. We are not going to have the perfect supply chain or perfect business model at all times. However, can you grow and develop together? Finding the perfect partner is great in an ideal world but the reality is we may not always have a choice and have to adapt internally to accommodate the partners available in order to avoid gaps in our supply chain. Investing time in developing the relationship, training on both sides, and open communication can overcome shortfalls and lead to a great partnership that on initial review didn’t look like it had the potential you hope for.
- Competitors may be working with same partners as you. Remember a supply chain partner should be a reciprocal relationship, be respectful, be easy to work with, and be the partner they want to work with.
- Developing your network is a long and continuous process. Finding new partners and developing the relationships is timely and costly, as such once a partner is onboarded, it is much more efficient to iron out any issues rather than find someone new.
- Mutual understanding and patience, works both ways. Either firm can have staffing issues or internal problems and need support on a short-term basis.
There is so much to discuss and consider when sourcing and managing suppliers, and building lasting network relationships. Ultimately, it is a process where personal perception and interpretation can influence decisions. The systems put in place should avoid the risk of selecting an inappropriate partner or overlooking someone with great potential, due to your own conscious or unconscious bias. By having robust processes in place and by thoroughly evaluating potential partners against your requirements, expectations, and compliance standards, you should be able to significantly reduce the risk of any unexpected issues, partnership failure, or unconscious bias.
