Your supply chain forms an important part of your business productivity and profitability, not to mention your overall business strategy. By having an efficient supply chain, you can help to save your business money and improve customer satisfaction, as you will be reducing the wait times for products. Essentially having a well-running supply chain can give your business a real competitive edge. Here are some ways to increase the performance of your supply chain.
Choose your suppliers wisely
Of course, a lot of the supply chain efficiency will be dependent on choosing the right supplier for you and your business needs. You should undertake thorough due diligence on any potential supplier you might use. One of the biggest mistakes you can make when choosing your supplier is by not shopping around. You will never know if you are getting the best price if you don’t see what else is available. Spend a little time researching suppliers and comparing their prices and the products offered. You also want to evaluate your suppliers in terms of communication, reliability and speed. All of these components form an essential part of a well-working supply chain.
Buying in bulk can be a cost-saving measure your business can ill afford to avoid. By buying in bulk you can usually benefit from lower unit costs allowing you to increase the profit margin. You could also pass on this benefit to your customers who will then look more favourably upon your business. It is will also help to avoid potential situations that see you with insufficient stock. RollPallet UK are a great example of suppliers who offer discounts for buying in bulk.
Cost vs Quality
Of course, the cost will play a huge deciding factor when it comes to choosing a supplier however you do still need to be mindful of choosing the price over quality. Suppliers who cannot meet deadlines or who provide a poorly made product for a lower price may well save you short term but it could affect your business reputation and ultimately end up costing you in the long run.
Do you need the middleman?
There will be times where the supply chain filters through several different people to get the product to you. A product will often start off life with the manufacturer and then be passed to a supplier who then passes the product on to you. Of course, the more people who play a role in getting the product to you the higher the price you are going to pay. Can you look to cut out some of the steps along the way? Can you go straight to the manufacturer to place your order for example? On the same token, consider whether you are using too many suppliers? If you are using multiple suppliers the cost will soon add up and you may start to lose track of your orders. If this starts to happen it is a sign that you may need to start to streamline your supply chain.
Image Credits: Cleyder Duque