Every business has a product or service to sell. These items make you money, but bringing your products to the marketplace is complicated, whether brick-and-mortar or digital. It’s easier said than done when you are a busy entrepreneur.
Your supply chain involves converting raw materials into finished products and distributing them. However, keeping track of all the moving pieces while managing staff and making sales can be overwhelming.
I am sharing about this topic because I am a bestselling entrepreneur and author with about 2 million books anc courses sold globally. Plus I’m well known for my peak performance entrepreneur consulting.
I love sharing insights and strategies to empower people to be successful. Do you need help with your supply chain but don’t know where to turn? Sometimes, it takes the right advice and an implementation plan to succeed.
To help you out, here are four supply chain strategies that will make your business thrive.
This is about something other than taking on more SKUs; you can have as many products as you want in your business. This diversifying strategy is about having a multiple manufacturing and sourcing network to avoid supply chain interruptions.
Relying on a single source for your products is dangerous because you will have no products if they have an inventory issue. Diversify to multiple vendors.
This is called multi-sourcing, and at its core, you should set up your main supplier and find other partners. This is also a way of implementing competitive sourcing where your vendors and suppliers compete for your ongoing business or particular contracts and projects.
You will get more favourable prices and terms this way, and if you are short on products from one supplier, others are ready to fill the gap.
Operating a business at any level is tough. A small operation has an owner wearing all the hats, while a large corporation requires a large team of employees working together to handle logistics. As you get bigger, there are more demands on the supply chain, and while you can take it all on yourself, this can be challenging. A better solution is to hire a third party logistics provider to handle it.
3PL companies manage and operate your supply chain. They can handle all aspects of fulfillment and logistics, including brick-and-mortar and e-commerce. You and your team have particular skill sets for running your business, so why waste time in the supply chain when your talents are best served while growing your business?
The team of logistics professionals can handle the following tasks:
Many companies also have storage hubs across the country and beyond, so as your business grows, they can meet demand. This may be your best decision when running your supply chain.
While you can have too many cooks in the kitchen, a network of engaged people across your supply chain is necessary for success. These stakeholders include suppliers and your sourcing allies, who play a fundamental role in procurement.
Logistical operators are in charge of transportation and the safe storage of goods. They ensure products move reliably from one to another. Then there’s the management team, those at the helm making vital decisions to keep things flowing smoothly.
The sales team functions as the customer’s advocate, fully understanding their objectives, needs, and concerns. Parallel to them, the finance team meticulously oversees fund allocation, ensuring financial health and accountability.
The IT department uses data analytics and technology advancements to enhance supply chain efficiency. Last but certainly not least is the customer, whose choices shape the service level required. Their needs are ever-changing and must be met quickly.
You can maintain an agile and responsive supply chain by collaborating and considering insights from these diverse stakeholders.
Human error is real, and people can only do so much, so your supply chain must use the latest technology to succeed.
Inventory tracking can be done with practical applications that optimize control, reordering, stockout avoidance and demand forecasting. This type of software is expanded into the warehouse to track inventory and storage in real-time and boost productivity by monitoring daily operations to find inefficiencies.
Returns must also be automated so damaged and mis-shipped items can be tracked. This allows for quality control and product testing. Management software-driven data will give you valuable insight into where your supply chain is thriving and where it needs improvement.
These four supply chain strategies can be easily implemented into your business. Using these methods, you can effectively handle your operations from procurement to delivery. Then, all that is left to do is keep making sales, increasing your business, and depositing those cheques.
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