Many of you think that businesses are successful because of their innovative products and services. No doubt the product is the success factor. But there is also one more thing which is more important than the product itself.
That one essential aspect is the Supply chain. Without a supply chain products cannot reach customers. Or it will not be manufacture as there will be no raw materials available on time.
This journey from the creation of ideas to finished items is a highly crucial process. As there are many moving parts involved. This is done through the supply chain. Now you get the idea of why just the product is not enough for your business. And your business success is based on the performance of your entire supply chain process.
You already have the idea of what is the supply chain, so we are not diving into this. But in this article, we are going to discuss how the supply chain is important. And what factors it plays in the success of your business. So without further due let’s dive into it.
Service Performance of Supply chain
We all agree that revenue growth is the symbol of the success of the business. And is also one crucial aspect in driving profitable revenue in the customer service and the satisfaction of customers.
Your supply chain performance can determine the level of customer satisfaction. While making the supply chain strategy you need to keep customers in mind,
If somehow there is a decrease in supply chain performance for instance long delivery lead times. Shortage of inventory, poor service quality, and others it will create a negative perception of your business among customers.
Many Asian countries including For instance Singapore are catering more logistics than anywhere in the world, and it is important to improve the performance of services of express couriers in Singapore, and other Asian countries, that is why you need to work on your supply chain management and enhance the performance.
Inventory Management for product-oriented businesses or service-related
either your business is product-oriented or service-related, you should have a place for inventory storage. You may wonder why there is a need for inventory in service industries.
For instance, construction is among services. They need construction materials and to continue the work they need to store inventories in warehouses so that they do not face any kind of delay.
Inventory management can reduce your working capital or operating cost. There are sometimes uncertain demands from the consumers and in that case, the proper inventory management can help your business in profitable revenue growth.
We suggest that you manage your inventory effectively and use more technology so that you have an idea of when and where the item is needed and the logistics team will dispatch goods to customers in no time.
Performance of Suppliers
Organizations rely heavily on supply chains that can help them to raw material delivery, and ship the finished goods to retailers, distributors, and even consumers. But suppliers also have a significant role in the supply chain and the productivity of a business. The performance of them will have an effect on your business, that is why they need to be careful.
Many industry experts suggest that suppliers are the weakest links in the success of your business, they have direct control of your supply chain and your business. to increase an overall success both in supply chain and in business, make effective and successful collaboration with your suppliers it will reduce the chances of uncertainty.
Maintaining a strong relationship with your suppliers and having a greater supply chain performance will have a positive impact on your productivity, as there is no resistance in the flow of materials. So we suggest that you choose your suppliers in a better way so that they cannot create any trouble any time.
Return of items
Product return has always been a problem for companies as they face some financial loss and in some cases customers. That is why every company particularly e-commerce has the proper guidelines for the return of the products. Customers often return products which they purchased earlier online. Believe it or not, you get more returned items compared to the past couple of years as customers are not easily satisfied nowadays.
This is where the supply chain works perfectly, you need to design the network and strategy of the supply chain in a way that can cater to the return process, and serve to increase customer experience. Cost efficiency of your reverse logistics may be a great deal for the bottom line of your business.
If you want to make your business more successful in the coming years, then you should put your supply chain management at the very center and give essential attention to it. Also, the product diversity and your company’s skills to manage supply chains will provide you an advantage over your competitors, and you can accomplish your goals easily.
Customer Experience
Customer experience is also important, and it is one of the essential factors of success for businesses. The experience is not just related to the product, but many other elements are included. One of which is the delivery experience of the product.
The process of delivery ensures that how much business is effective and values their customers. Time of delivery is the most important thing if the product delivers later than the expected time of arrival, it results in negative reviews, and if the product reaches on time and before time then it results in a positive experience, as customers were not expecting that fast delivery.
Not just time, but how safe the product reached. If the item was damaged then it can cost the company, but if it is safe then the business successfully gains the trust of customers. To make the customer experience better businesses need to make their supply chain more effective.
Value Recovery
There should be clear guidance on how your returned product is returned to you. If the product is damaged then it needs to be sent back to your workshop where it can easily be repaired, or if the customers don’t like it then it should be delivered to sales inventory where it can be used for future purposes.
However, there must be a clear process mentioned in the guidelines about the returned item must be returned at a specific location depending on the reasons of return.
Conclusion
Organizations are not successful only with their products but also with other elements that determine success. One of the elements in supply chain management. Through this aspect, you can easily manufacture and deliver your products to your consumers. That is why it is to be said that the supply chain is a highly inevitable factor in the success of your business.
You have got the idea by now that why supply chain is also the success factor besides your distinct product. Your customers prefer your product but their satisfaction level and experience are highly dependent on the supply chain. To manage this effectively and increase the profitable growth for your business by putting this into the center of attention.
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