When it comes to your small business, some elements are just too important to be left to chance, and supply chain management is one of those practices. Almost every business, no matter it’s size, will depend on an eco-system of other people, companies, resources and information to get their product or service to the customer. So when that network breaks down, the effects can be devastating. From slowing down your progress to losing you contracts, causing untold damage to your reputation or draining profits, a breakdown in the supply chain is always very bad news. Keeping a close eye on these arrangement at all times and taking a few preventative steps can go a long way towards making sure a small problem doesn’t snowball into a huge issue…
Understand the Risk Factors You Face
Disruptions and complications are a fact of working life – and there’s not much you can do to prevent them entirely. However, with correct analysis and planning, it is possible to at least understand what the risk are and put in place a crisis management plan in case of any issues. Your industry will have certain operating risks you will need to be aware of when compiling your strategy, so make sure these are included and that your plans are as detailed and comprehensive as you can make them.
Find the Best Suppliers
Establishing great supplier relationships is absolutely crucial. In order for your business to be the best, you need to work with the best delivery partners, so make sure you spend adequate time on due diligence before entering into any arrangements. Find specialists in their fields who will understand your requirements – from haulage experts like Jayde Transport to small business accountants who can keep the books in order. Once you’ve tracked down the best, keep the relationship sweet by treating your contractors with respect – keeping them informed of plan changes, always paying invoices on time and keeping familiar with how their businesses are doing.
Keep an Eye on Proceedings
Once everything is set up, it’s not a good idea to just sit back and let it tick over, You need to be constantly optimising steps in the supply chain to add strength and value wherever possible. Finding improvements in cost effectiveness can help you see in advance where revenues and productivity may be struggling. In that way, it’s easier to anticipate any potential disruptions and step in to manage the situation before it escalates – thereby minimising the negative impact on your business. It’s important to put KPIs in place to give you a framework for tracking and measuring success.
Protect Your Profits
Small, incremental improvements are usually the best way to improve your bottom line without disrupting productivity. Whether it’s introducing newer technologies to your supply chain process, driving down component costs, or adding and removing links in your supply chain to optimise your process, having a certain level of control over each step can help you to increase revenue and have more to invest back into your business. Master your supply chain, and you can master your profitability.