Embracing the Pain Points in the Supply Chain

The term ‘supply chain’ has not been cursed or lauded so much since the term was coined back in the 1980s as it has been in the last two and a half years. Our consumer woes during Covid magnified the fragility of the web of suppliers that keep the world comfortable. The word ‘chain’ is not used by accident. Each link connects to another forming the chain that supports the weight of products and services delivered to consumers. The weak links were definitely exposed.

But in the mobility industry, it shined a light on how important the partners are that actually provide the services that get employees from point a to point b. Many providers had often been treated, not as a partner, but just as a vendor. They now rose into focus to be the entities who creatively figured out a way to keep moves happening when other parts of the economy became paralyzed.

And the best part was that the relocation management companies and corporations listened and partnered to create solutions. They realized they needed the creativity and expertise of their providers to create solid workarounds. It revealed how little those who use our services know about how our businesses work at a granular level.

Creating the experience

Sources of moves create expectations and metrics for the providers, but as long as everything works as planned from their perspective, they don’t get too far in the weeds, which is understandable in light of the many moving parts they are managing. The brokers and other providers are like ducks in a pond—smooth on top but feet moving a mile a minute below the water giving an illusion of smooth sailing. Because one thing we know about real estate company relocation directors, is they know how to do what needs to be done to keep everyone happy.

It may mean upsetting a top agent or irritating their broker-owner, but they know the importance of an account-based business where one sideways transaction can mar the chances of ever receiving business from that source of business again. It means going above and beyond even when they are short staffed, or it costs the company money.

What’s under the hood?

It is important that entities who depend on one another understand each other’s pain points, even though we have enough of our own. By understanding them, we can work together to ease the pain in a collaborative way by being more flexible or intuitive.

Relocation Directors are often faced with internal challenges that involve top producer’s threats that could affect the brokerage in a very negative way if they can’t find out a way to a satisfactory resolution. Or they have several sources laying claim to one referral fee. Constant downward pressure on commission and rising referral fees is a very real issue. Corporations are dealing with senior leaders who are trying to figure out how to manage a budget, achieve hiring goals, and get in front of the remote work situation. Relocation Management Companies are dealing with their own competitive issues and the challenges of staying relevant along with shrinking margins. We can’t forget the ultimate client for all of us is the transferee.

I am hopeful that the newfound partnership with the service providers will continue. If relocation companies and corporations can work more closely with their suppliers, not only so brokers and other providers can educate their sources of business on how their processes work, but also to allow the providers to understand the challenges their sources of business face every day.

Having advisory councils that not only focus on how to solve one-sided problems but focus on the entire process and every bump along the way is a great start. No one is particularly keen on hearing about other people’s challenges, but until we understand each other, we can’t really be partners.  These are two-way relationships whether we all like it or not. Pushing the hard conversations to the top of a relationship can make everyone feel heard and understood.

While everyone feels as if they have the biggest challenges at the mobility table, it is always perceived to be more dire based on the location of your seat. When each link in the chain is equally strong, it becomes hard to break. By understanding each other and the problems each of us face, we can truly form a bond that can weather any challenge.

“Supply chain is like nature, it’s all around us.” ~ Dave Waters, University of Oxford