In today’s travel landscape, optimizing your supply chain is critical for success. However, hiring a full-time Chief Supply Officer (CSO) or Head of Supply can be a significant investment, particularly for smaller to mid-sized travel agencies, wholesalers, and tour operators. A fractional Head of Supply provides a cost-effective alternative, offering access to strategic supply chain leadership on a part-time basis. According to a recent report by Chief Outsiders, fractional executive engagements have increased by 40% in the last two years, reflecting a growing demand for strategic expertise on a flexible basis.
What Does a Head of Supply Do?
The Head of Supply is responsible for managing all aspects of the supply chain, including:
- Supplier Relationship Management: Developing and maintaining strong relationships with suppliers to ensure access to competitive rates, quality products, and reliable service.
- Inventory Management: Optimizing inventory levels to meet customer demand while minimizing costs and risks.
- Contract Negotiation: Negotiating favorable contract terms with suppliers.
- Technology Implementation: Identifying and implementing technology solutions to improve efficiency and visibility across the supply chain.
- Performance Monitoring: Tracking performance metrics and identifying areas for improvement.
- Risk Management: Identifying and mitigating potential risks in the supply chain.
The Benefits of a Fractional Head of Supply:
- Cost Savings: Fractional executives are typically paid on a project or hourly basis, which can be significantly more cost-effective than hiring a full-time employee. The Harvard Business Review notes that companies can save up to 50% by hiring fractional executives compared to full-time hires.
- Access to Expertise: Fractional executives bring a wealth of experience and expertise to the table. They have typically worked with a variety of companies and industries, and they can quickly identify and implement best practices.
- Flexibility: Fractional executives can be brought in on an as-needed basis, providing businesses with the flexibility to scale their leadership team up or down as needed.
- Objectivity: Fractional executives are often more objective than internal employees, as they are not tied to company politics or culture.
Is a Fractional Head of Supply Right for Your Business?
A fractional Head of Supply is a good fit for businesses that:
- Need strategic supply chain leadership but cannot afford a full-time executive.
- Are experiencing rapid growth and need help scaling their operations.
- Are looking to improve their supplier relationships or inventory management processes.
- Are considering implementing new technology solutions. A survey by the Institute for Supply Management (ISM) found that 70% of companies believe that strategic sourcing is essential for achieving business goals.
If you are looking for a cost-effective way to improve your supply chain, a fractional Head of Supply may be the right solution for your business. Contact us today!
Check out our recent article on Strategic Supplier Relationships