Managing Supplier Disparity

The Central Challenges of Inclusion Strategy
by Dean L. Jones, C.P.M.

There are two factors that weigh most heavy to implement a Corporate Inclusion Strategy; first, that the central challenge is to balance the need for utilizing economies of scale and responsiveness to small business conditions, and second, that the more emphasis companies place on scale economies the further they move away from prescribed corporate responsibility.

This universal problem has a strong need for correction. The importance of changing the most objectionable episode for the business community today rest with the effective engagement of small business enterprise into corporate supply chain management. The small business motif in America is rapidly shifting away from niche business, to expand as an ‘unshakable’ monolithic giant, pursuing to own, control, and operate every profitable aspect of the industry they serve.

The economic gap does not have to widen more than it has unless those that sit in commanding positions wish to make it so. The power base that seems to accompany wealth is where the focus of this significant dilemma rests. Wealth is dictating non-competitive contracting, an idiom that a competitive society should never see or hear, however it is occurring in the bowels of our government and the daily fiber of investor-owned corporations.

Unshakable entities are consistently gaining influential control over production and distribution and thereby increasing the economic divide. The absence of competition leads to higher pricing for every concern in the supply chain and yields a general lack of responsiveness to the needs of the American consumer.

Our much needed advocacy groups are growing weak through confused states of global oppression, fabricated wars, and greed. The era of speaking out for broader competition, an equal awareness of product prices and volumes, eliminating discrimination, total mobility of productive resources, and complete open access to the process have almost disappeared. The rallying cry now is feed the hungry and fight cancer.

Noble as these causes are, the drive of change comes from people evolving with imagination and independence. Pure competition levels the playing field, but yet it remains the furthest concept of a theoretical ideal situation that exists today. How do we collective work together toward Closing the Gap of the Economic Divide?

Corporate America is taking outsourcing lightly as the only main reason for doing it is to improve the bottom line. Sadly, outsourcing takes reduced costs and reduces revenue access from lost consumers. Outsourcing is extremely complex and complicated undertaking and each facet of this activity needs close review. There is little margin for error if full value is to be obtained.

However, this need not be a trauma, nor an adventure of blind exploration. The potential benefits are well documented, and inclusive strategic outsourcing is now mature enough for the path to have been trodden countless times previously.