Typically, companies and their employees live in a dynamic we might call the rat race. Outsourcing – What you're not seeing?!
We say this because the daily routine consumes a lot of our time, and we are mostly focused on short-term
goals and situations where we have visibility. Now picture the following situation: your company hired a trade marketing service provider (to collect and analyze information about your products and their retail display).
This company will launch a campaign as part of a new product line initiative. To do so, you will have dozens of professionals in stores across Brazil within two months.
However, this project's kickoff is delayed by six months. Just as you are about to start activities, you get the news that your supplier went bankrupt due to the delay, because during contracting they were required to hire the personnel who would be outsourced as soon as the contract was signed, and no delay was anticipated. Consequently, due to the supplier's weak capital structure, they could not shoulder the high cost of the payroll without revenue, as the service had not yet begun.
What you're not seeing
Notice that this example highlights the need not only to monitor legal compliance of service providers regarding labor, social security, and OSH liabilities, but also to assess their financial health to deliver the contracted service.
A lack of visibility into our suppliers' financial condition can create a risk for our procurement. For this reason, we must perform regular management and qualification of our service suppliers, investing more effort into the most critical contracts.
