What is the Company Supply Chain?
The Supply Chain means different things to different business models but everyone agrees on its importance to success. In our e-commerce driven economy, especially given the challenges of the ongoing pandemic, understanding your supply chain defines profit. The company supply chain is a matrix or network between a customer and supplier. Think of the supply chain as the process by which sellers and buyers transact commerce. For an online company the supply chain begins with the front-facing website and a list of vendors. Sometimes this complicates processes from technology to manual labor.
For the small business owner, for example, many stages of the supply chain are not seen from the lens of maximum efficiency or profits. SMBs might not have the resources, or time, to consider marketing, product development or customer service as integral parts of the supply chain. However, in an economy where finding a manufacturer is easier than ever, small business owners must identify opportunities to be market differentiators. This, for many business consultants, is where the supply chain and fulfillment services meet.
Company positions like web developer, product marketer and distribution count on fulfillment services. A supply chain manager, often the business owner themselves, begins with a business plan. That plan, or strategy, is founded on its ability to move goods or services into a customer’s hands. If manufacturing raw materials or packaging from an assembly line, productivity and efficiency principles anchor economies of scale and profit. Tactics for expert delivery and logistics include both automation software and manual labor.
Fulfillment service companies are mission critical to a successful business model since they’re involved in storage, packaging, delivery and returns. Fulfillment service companies will increase a company’s profitability by working with supply chain managers to increase efficiencies. In fact, business logistics management and supply chain management have become one in the same.
Fulfillment service companies that are versatile help integrate processes. Successful companies understand that in order to get the most out of their supply chain they need vertical integration. Strategies and tactics that lead to less spending on labor, better shipping and improved inventory control mean more time and money for new client acquisition.
Importance of Supply Chain Management
Have you ever heard the saying, “you’re only as strong as your weakest link?” Knowing the weakest link in your supply chain is mission critical. Remember, supply chain management is the process of juggling, in many cases, numerous activities. Fulfillment services that integrate coordination of one or more functions are usually the best vendors and partners for small business owners. Whether you are shipping products by air, sea or land only an experienced company will look after the different quality standards and customer needs.
Supply chain management is important for keeping clients and acquiring new customers. The right fulfillment service partner mitigates risk and extends the customer life cycle by improving the experience of doing business for all parties from marketing to customer service. With the right fulfillment company therein lies the real opportunity to improve profit margins and customer loyalty.
In addition to this post, you may also find these articles from our website helpful, “Reasons Why a Fulfillment Company Can Solve Your Inventory Problems” or “Can a Small Business Benefit from Supply Chain Management Services.”