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Over 57% of businesses think supply chain management allows them to expand over time.
Without the right supply chain planning services, your business can end up suffering from low-quality products that you can’t sell at competitive prices, have too much stock of one item and not enough of another, or run out of products at an inconvenient time.
All these situations can be damaging to your customer relationships and bottom lines. And yet, more than 60% of businesses don’t even use technology to keep an eye on their supply chain performance.
If you are one amongst them, here’s how supply chain management providers like ComActivity can help you win big.
What is Supply Chain Management?
Supply chain management is used in the manufacturing and distribution of goods and services. It begins with acquiring materials or supplies and ends with delivering products to customers. The process involves people and organizations that make this happen, from suppliers who provide raw materials to shippers, retailers, financial backers, and employees.
Supply Chain Processes
Supply chain processes can be beneficial for companies looking to streamline their process and reduce costs. Look how they work below.
- You can develop a strategy to enable the most efficient flow of goods and information throughout the supply chain.
- It may be possible to reduce inventory levels and remove costly steps.
- There is a shift from suppliers to customers as the company becomes more customer-focused.
- It may be possible to reduce product and process variables, which can limit the range of markets that your business can cater to.
Benefits of Supply Chain Planning Services
The process of supply chain planning may be daunting, particularly if you’re just starting. Without an established track record, it’s hard to know where to begin or how to attract business from customers outside your geographic area.
By partnering with a team specializing in supply chain planning services such as ComActivity, you’ll save time and money. It ensures that your inventory is stocked correctly and delivered on time.
Delays in product delivery can reduce your customer retention rate. And it’s an unfortunate reality when dealing with wholesale products. But you can minimize delays by investing in supply chain planning services.
A third-party logistics partner will ensure you have a steady supply and reliable delivery times. It means your customers will be able to procure whatever they need from your store or website quickly.
Keeping your customers happy is one of the foremost ways to grow your business. Offering service-level guarantees is an easy way to make sure customers don’t feel like anything is holding them back from purchasing from you.
The efficiency of supply chain planning translates into an immediate improvement in an organization’s bottom line. Errors and missteps in forecasting costs, customer demand, and logistics, all avoidable with a bit of effort, can make or break a company.
A supply chain professional can help you better utilize your resources and maximize your company’s productivity by ensuring that products arrive at their destinations on time.
For example, a supplier isn’t fulfilling the contract because of low inventory or some other setback. A planning expert can advise you on whether to buy from a different supplier, wait until your previous supplier restocks, or come up with an alternate solution altogether.
To boost your sales figures, you need to ensure that your products are available when and where consumers want them. If you can find out which types of products specific customers prefer, you can schedule delivery accordingly.
For example, if a particular product, like a pair of shoes, sells well within a specific month each year, that month becomes an excellent time to stock up on shoes. If sales don’t pick up as expected, you can re-evaluate your predictions and adjust deliveries accordingly.
Take a minute to visualize how these benefits can help your retail business succeed with supply chain planning services. Envision how it will allow you to improve product availability, reduce waste and increase sales of your most profitable items.