When a company has an effective Supply Chain Management in place, they have an immediate competitive advantage over competitors in their industry. This allows businesses to decrease their inherent risks when it comes to buying raw materials and selling products or services. By implementing supply chain management systems, businesses are able to reduce waste and overhead costs. There are many benefits to supply chain management, and in this blog, we’ll discuss a few of them.
United Global Sourcing is proud to offer turnkey solutions for small to large businesses when it comes to their manufacturing and fabrication needs. We specialize in all of your global sourcing needs, including industrial manufacturing and consumer products like sporting goods and household products. We also offer product concept, design, and prototyping services if you have a unique idea for a product. If you’re interested in learning more about our services, contact our friendly staff today!
Advantage #1: Higher Efficiency Rate
Running a small business can be a challenge. But when your business is able to incorporate product innovation strategies, integrated logistics, and supply chain management, you’ll be able to predict demand and act accordingly. If you want your company to adjust more dynamically to the fluctuating economy, supply chain management is a must.
Advantage #2: Inventory Buffers
No matter what industry you’re in, there is almost always a variability in customer spending. This means that businesses must take charge of managing their inventories in a way that minimizes holding costs, while also providing enough flexibility to meet the customer demand. If your inventory falls too low, your business may have to pay overtime to produce more products. You may also lose out on business and revenue if your customers get impatient waiting for your products to roll out. As a result, they may shop somewhere else. One way to combat this issue is to invest in an efficient supply chain management system. Most of these systems include inventory buffer levels to help you stay within your budget and means.
Advantage #3: Optimal Shipping Options
As eCommerce businesses continue to grow, buyers have more options to purchase products than ever before. If your company doesn’t have a solid shipping plan in place, you may lose customers. Your business’ shipping options just meet the demands of the marketplace. Whether you’re shipping small household goods are large automobile parts, shipping your products in a quick and efficient fashion is key to the success of your business. Supply chain management systems can help your company determine the best way to ship your products, while also reducing your costs at the same time.
Advantage #4: Mitigate Your Risks
As a business owner, you face risks everyday. Managing risk is a key role for any business leader, and there are several supply chain management systems that can help you to identify critical risk factors in your industry. Whether you’re concerned about product compliance or quality, putting your energy towards a supply chain management system will only help you to mitigate these risks moving forward.
Advantage #5: Stay On Top Of Demand
With the help of supply chain strategies, integrated logistics, and product innovation strategies, business owners can predict the demand for their product accordingly. Today’s supply chain must be able to accomodate shorter product life cycles, fluctuating economies, and emerging markets. To ensure your business is adequately responding to changes of demand, supply chain management is key.
Another major benefit of integrated supply chain management is increased flexibility. According to Chirantan Basu, a contributor of the Houston Chronicle, “Tight supply chain integration gives management operational flexibility to respond rapidly to external events, such as the actions of competitors and changes in customer demand,” Basu said. “Companies can gather intelligence through their supply chains, which allows them to be generally aware of what their competitors are planning months in advance.”
Advantage #6: Eliminate Waste
Business owners across the country are becoming more and more concerned with the amount of waste they produce. They are looking for new ways to reduce or eliminate the amount of waste their company makes on a daily basis. When it comes to supply chain management, there are lean practices that can help you to identify areas of waste improvement.
Advantage #7: Minimize Delays
Many supply chains are plagued by delays that can ultimately result in poor relationships and lost business. If you’re constantly having to deal with late shipments from vendors, holdups on production lines, or logistical errors, you may want to consider implementing a supply chain management system to avoid these issues down the line.
At United Global Sourcing, we understand that some companies will simply connect you with a manufacturer, only to disappear. This can lead to an array of miscommunication and quality issues with your product. When you work with our supply chain experts, you won’t have to worry about these problems. We put communication and quality at the forefront of all of our projects, and we maintain a 24-hour communication cycle that allows us to address issues quickly and early on. From simple to complex products, you can relax knowing that your manufacturing requirements are being handled by professionals. Get your quote today!
Advantage #8: Improve Customer Service
At the heart of virtually any successful business, you’ll find stellar customer service. With the help of logistics and supply chain technology, it is now easier than ever to put your products in the hands of your customers. When you invest in supply chain management, you can track your shipments, products, and materials on the supply side very easily.
Advantage #9: Reduce Your Overhead Costs
Many new business owners lack the skills and knowledge needed to trim the fat from their products without affecting the overall operation in a drastic manner. When you work with a supply chain management company, you can cut costs in the production process without changing the quality and price of the final product. A supply chain company will be able to help you identify processes or operations that are unnecessary in order to help you save money on your production costs. By doing this, you will be able to take the money you save and invest it right back into the company.
United Global Sourcing: Your Supply Chain Managed
It can be a real challenge trying to manage your company’s supply chain by yourself. If you need assistance finding the best industrial manufacturing facility to create your consumer product, contact United Global Sourcing today. We specialize in a variety of manufacturing and fabrication needs, including precision casting and machining and product packaging to help you create a quality product at an affordable price. If you’re interested in learning more about our services or you’d like to get a free quote, contact us today!