Traditionally, businesses have seen their supply chain as only a set of costs, something which can only be improved by reducing the price of the services that make it up. The fact is, today, that a too-thin supply chain is the bottleneck preventing good customer service, limiting global integration, and reducing resilience and flexibility.
Finding the right supply chain balance for your business
Achieving the correct balance of price, resilience, speed and customer service is a challenge for every business. Too little and you lose customers for lack of good service, too much and you lose customers for high prices. To get the balance perfect, you need to assess your business needs precisely and shop around quite a bit for your service providers. Once you get the mix right, however, you have a valuable strategic resource that can give you a real edge over the competition, and let you ride out the rough patches that are, these days, almost inevitable.
So, what industries are already making their supply chain strategy part of their upper level decision making, and which ones will have to play catch-up?
Those industries which are forced to maintain the highest levels of flexibility have already learned to put the supply chain at the grown-ups table. High tech goods suppliers and consumer goods see rapid market fluctuations and short product lifespans, and have already adapted to the new market.
But instability is coming to new industries. Even heavy goods and chemical suppliers are being affected by rapid shifts in global demand and costs, and are feeling the dangers of a too narrow or too fragile supply chain. As the need to adapt to rapid changes in what was once an almost leisurely market increases, nearly every industry will have to use an updated methodology that incorporates supply chain management into their long term strategic thinking.
So, if it is going to happen anyway, you might want to develop a strategy sooner rather than later.Call DMG Freight Services today on 01279 452 468