With pandemic-driven supply chain disruption has come new challenges, including component shortages, regulatory changes, skills-gaps, the need for cost-effective alternatives to China-based manufacturing, and more.
Finding a proven supply partner in even the best of times can be daunting. But in the current climate, it can feel for many companies like a game of musical chairs. The good news is that there are more “chairs” than might first be apparent, provided you know what to look for.
Here are four areas you’ll need to assess to help your company find an experienced, cost-effective supplier who can ensure you’re not the one left standing.
Certifications
A reputable supplier will have certifications that ensure they’ve achieved the standards necessary for ensuring strict quality control and regulatory adherence. While standards for consumer products are relatively lax, those for industrial and medical are necessarily highly rigorous.
At Pivot, because our one-source product design, development, and manufacturing expertise spans over six markets and across more than fourteen industries, we bring FDA-registration and multiple ISE and ISO certifications, including ISO 9001:2015, ISO 13485:2016, ISO 80079-34, and IEC 60601-1.
Financial Stability
As many as 50% of all buyers have partnered with a supplier that went out of business, and it seems safe to say that in lieu of the global pandemic, this figure will only rise. One way to gauge financial stability is to determine if your partner is experiencing stable growth, especially in conditions of adversity. If a company can continue to grow in the face of tremendous odds, the chances are that they can help you do the same.
At Pivot, we continue to scale rapidly to serve customers worldwide. Since 2016, we’ve achieved an annual growth rate of 141%. We’ve expanded our talent pool from 136 to nearly 700 and added eight new businesses to our family of companies. In the last few months alone, we’ve been featured on the Inc. 5000, a list of the fastest-growing companies in the country, as well being in the top 1% of the fastest-growing companies in our hometown of Kansas City.
Vulnerability to Geopolitical Risk
Both state-sponsored actions (think, policy and regulatory changes born of trade-tensions with China), as well as “black swan” events like COVID-19, have made companies increasingly aware of the need to assess geopolitical risk when vetting a new supplier.
When evaluating a potential supplier in the context of geopolitical risk, you’ll need to look for three things. First, access to a global sourcing network and manufacturing alternatives to China-based production to surmount supply chain disruption. Second, company-owned facilities to guard against the potentially destabilizing effects of an acquisition or hostile takeover. Three, in-house talent for closing skills-gaps that are being generated by the trend for reshoring or near-shoring.
Agility and Scalability
Many companies are currently facing highly unpredictable demand curves. These curves bring considerable risk as well as significant market opportunities. To seize them, companies need supply chain partners with the agility to rapidly adapt to fluctuating demand and scale production volume accordingly.
Pivot helps companies capitalize on unpredictable demand curves through agile processes, advanced technology (including SMT, AI, 3D printing), and 200,000 square feet of manufacturing across three continents to serve the US, Asia, and European markets.
If you’re looking for a proven supply chain partner, we can help. With nearly 50 years of experience helping companies bring competitive products to market, we deliver the one-source solutions that can help you successfully scale. Contact us today to learn more about how we can help you move profitably forward.
