You may not give much consideration to how the products that you buy every day actually get to the retailer that you purchase them from. But, there is a vast and extensive process that ensures you have the items you want at the very time that you need them. This is supply chain management, and it is key to a thriving global economy.
Listen To Demand
With supply chain management, products are sent from one or multiple locations across the country to their final destination. There is a lot of energy put into planning and creating a strategy on how these products are moved to make it as cost-effective as possible. There may be a holding location that is closer to your business, or there may be a direct truck shipment if these items are needed on the spot quickly.
Supply chain management can be done in a number of ways. You may need products on your shelves when consumer demand is high. This can be costly if not planned according to you and your customers’ needs for these items. Keeping a good eye on upcoming demand and low inventories can help you get the products you need to sell in time for your customers without paying an additional shipping cost to do so.
Price Accordingly
Prices of products are driven often times by supply chain management. While it is ideal to keep your offering prices as low as possible, this can’t always be done. You need to consider the costs of getting the product to your physical location. Supply chain management, if done right, can help to keep these logistic costs to a minimum.
Thinking about when you need your products and how directly they can be delivered to you can help you save and keep your prices low. Using your buying power to negotiate a low-cost delivery that has a minimal number of stops can help you save on your supply chain management plan. This will directly affect how you price your products and the cost that consumers can afford to pay.
Increase Delivery Speed
Being the first in your local area to carry a product that consumers want now can give you a competitive edge that helps your business grow. Using supply chain management to effectively gain a customer following because of the rapid delivery times you receive from your supplier can be beneficial in many ways.
You reap the benefit of having a product first and receive a loyal customer following as a result. But, it can and does cost more to ensure you have first and quick delivery. With supply chain management, you can effectively plan for product logistics using computer algorithms to track shipments and plan routes. This can keep costs down and allow you to be more efficient in your overall supply chain strategy.
Logistics And Planning
As a business that provides supply chain management, you may need to look at how you are performing and delivering to your customer base. Your clients may want product quickly, and if you don’t have the manpower to reach their goals, you may lose their business to a competitor that can. But, having too many employees to provide a timely schedule that exceeds your customers’ expectations can increase your overhead.
Find a happy medium that looks at how you can achieve the needs of your customer base while also maintaining your operations in an affordable way. Using only the number of drivers you actually need and planning routes so they make the most sense can help drive revenue for your business while also keeping your clients satisfied with your service.
When you need employees to boost your business, contact Resolute Technologies. Our approach is based on innovation, trust, respect and mutual collaboration. As a boutique supply chain consulting company, we have a limited overhead which enables us to provide the highest quality resources below competitor rates. With Resolute, you get not only a resilient, agile supply chain network that guarantees profitable growth but a partner for your future.