FINDING DISTRIBUTION CHANNELS
Business Due Diligence
Option 1, 2, 3 .. and ..?
Due Diligence and their options
Outsourcing is very common. We outsource more than we think we do (think plumbers..) and finding the right OEM, CDMO, CRO and so on, goes beyond just finding the best there is, but the right fit.
What is the right fit?
Size – if the organisation size of both parties is far apart, be prepared to deal with bureaucracy of the larger one. If the larger party ‘looks down’ on the other, that is an immediate red flag regardless of their reputation.
Fit – if one party is trying to ‘force fit’ their device to the outsourcing party, or the other party, hungry for business, just says ‘yes’ to anything and everything. It sounds great initially, but with mismatched expectations, things sour quicker than milk in open air.
Culture – this goes beyond finding people of the same country, race, diet or personal interest 😊 Putting it more directly, it is the mix of being transactional and being relational. Different organisations apply this mix differently, and having common ways of working helps a great deal.
And what do you know – that is just step ONE!
Then comes the objective parts – background check, due diligence processes such as online and on-site assessments. If the earlier bits are sorted out, when organisations invest further on the due diligence process, the likelihood of success naturally increases. A part of ‘fit’ and a part of ‘culture’ will always form part of this due diligence process, and it’s our job to detect, determine and decide.
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