If you run a company that imports and exports products, you know all about supply chain problems.
Every day, you probably face issues on how to make better sourcing and purchasing decisions, as well as how to improve the procurement process. According to experts, there are a handful of ways that can help you resolve them.
By learning how to diversify your supply chain and maintain your company’s growth, you can bring your business to great heights.
Here’s how.
Establish Good Communication
Despite the vaccine rollouts and economies gradually reopening the world over, the pandemic isn’t over just yet.
With this in mind, it’s vital to evaluate the way you interact with your suppliers, especially if they’re based overseas.
There might be a big chance of miscommunication, especially if you’re importing from other countries and dealing with supplies who are not native English speakers.
Some words can get lost in translation and these might lead to bigger, costlier problems if not addressed early on. Hence, to avoid this problem, it’s crucial to look at the processes as well as your communication channels.
Ask your supplies what their preferred form of communication is, whether it involves calls, email, or instant messages. Most like to respond via the latter since it enables automatic translations for both parties.
Regardless of what you agree upon, keep in mind that establishing the right communication channel is key. This way, you can drastically cut down on the chances of miscommunication.
Collect and Check Data
Always collect data and analyse it often.
Experts share that most business owners fail to check (or even gather) important data about their organisational activities. Yikes.
Obviously, this can be detrimental to your company. Collecting the right information always gives you an edge when it comes to making better decisions regarding important issues. The right data can also help you identify how much material you can produce at any given time.
This may sound daunting, but it’s actually not that complicated.
You can start by checking your sales data and then reviewing how much revenue is coming in from your physical and/or online stores. Assessing your inventory can also help you adjust and recalibrate your supply chains accordingly.
Done right, gathering and analysing the right data means you won’t have to worry about products running out in one store and piling up in another branch.
Learn to Negotiate on Pricing
Small business owners can and should negotiate prices.
According to experts, many entrepreneurs and SMEs don’t negotiate enough. As a result, they end up paying more. Worse, they also end up paying for things that can be waived or lessened, such as shipping or certain manufacturing costs.
Hence, learn to negotiate and ask questions before closing a purchase.
Negotiate prices with your vendors and suppliers. Ask for ways to save on shipping or storage costs. Moreover, don’t be afraid of cutting ties with a supplier since the market has gotten more competitive and supply contracts are now less restrictive as a result.
Manufacturers can no longer sustain massive inventories for long periods of time. This means that they have to dispose of their stock faster.
So, don’t forget that you can always get good bargains if you recalibrate your purchasing strategies. Do it well (and often enough), and you’ll find yourself with significant savings at the end of every fiscal year.
Need help with negotiating and supply management? You’ve come to the right place.
Remote Staff has been providing assistance to more than 3,000 Australian SMEs and entrepreneurs with the help of remote workers from the Philippines since 2007. So, if you need a virtual assistant to help you keep track of your supply chain on a daily basis, we got you.
Call us today or schedule a call back and let’s get started.
Serena has been working remotely and writing content for the better part of the last decade. To date, she's written for Pepper.ph and Mabuhay Magazine, among others, and has churned out more than a thousand articles on everything from The Basics of Stock Market Investing to How to Make Milk Tea-Flavored Taho at home. Hermits, aspiring hermits, and non-hermits with interesting project propositions may email her at serena.estrella10@gmail.com.
