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How any of these 7 common supply-chain mistakes can be like a ball-and-chain on your company’s growth – plus 7 proven ways to correct those mistakes.
It doesn’t take much to drag down your com-pany’s profitability, especially if you operate in a highly competitive marketplace. Yes, your products and/or services are first rate, but the logistics of getting them to customers can wreak havoc with your company’s financial health. Which is why you need to efficiently and seamlessly coordinate and manage procurement, production and delivery of those products and /or services.
Here are 7 ubiquitous supply-chain mistakes along with recognized best practices to help you avoid them. If your company is among the 94% of SMBs that lack full visibility on their supply chain, you probably recognize yourself in more than one of the following:
Mistake #1: Having too many vendors (like trying to herd cats).
Working with a variety of vendors is likely to produce inefficiencies, up your costs, and make managing your supply chain even more challenging.
SOLUTION
Consider working with a single, dependable company such as Glovendor that’s proven to be adept at coordinating multi-dimensional supply chains. Keeping all stakeholders in sync and centralized simplifies and streamlines your operation, which leads to greater profitability and happier shareholders.
Mistake #2: Being fuzzy about how much work is involved.
If you don’t clearly define the scope of the work, expect misunderstandings and delays.
SOLUTION
Rely on technical experts to define each and every spec in technical documents for the manufacturer to adhere to. Thus when the supplier understands the precise requirements, products can be delivered on time and faithfully according to specs.
Mistake #3: Assuming everyone’s on the same page.
Most likely they aren’t for the simple reason that many times roles and goals are not clearly defined. When that’s the case, people tend to fill in the gaps with their own ideas of what’s needed.
SOLUTION
Make project management and dedicated communication channels a priority. Like any relationship, communication is key.
Mistake #4: Lacking backup.
It’s wishful thinking to believe that Plan A will always prevail. What if you have a supplier that suddenly grinds to a halt? That could easily happen in China, for example, which could face unexpected tariffs at a moment’s notice thanks to political volatility. Or what if another pandemic breaks out? All kinds of things could disrupt your entire supply chain, which is why it makes more sense to have a multi-country supply chain.
SOLUTION
If you have suppliers who are diversified under the direction of one main supplier, such as Glovendor, you can have the resilience to weather disruptions while maintaining the power to make use of bulk discounts. With 66% of SMBs facing major supply-chain disruptions, having reliable backups in place is a necessity.
Mistake #5: Turning a blind eye to data.
Many companies feel uneasy having to make sense of data – to the point of being intimidated – so they tend to fall back on a conviction that their experience and instinct are all they need. Wrong! Your competitors are keeping up to date on changing prices, the latest research and emerg- ing patterns, and so should your company.
SOLUTION
Expert use of data will keep you highly competitive and your supply chain more efficient.
Mistake #6: Thinking tomorrow will take care of itself.
It won’t. And failure to think and plan long term can increase capacity constraints and cause you to miss opportunities.
SOLUTION
Have your company conduct capacity assessments and make scalability plans. This will better prepare your supply chain to accommodate future demands and growth.
Mistake #7: Failing to cultivate vendors.
Each link in your supply chain is important to its overall success, so it’s critical that all the members involved feel appreciated and supported.
SOLUTION
Turn to a company like Glovendor that already has great partnerships with multiple vendors worldwide. This, in turn, makes it much easier and faster to resolve any issues that inevitably arise.
More than 6 out of 10 SMBs realize they’ve got supply-chain problems and are either altering their supply chain or are searching for a solution.
How to avoid these 7 deadly mistakes?
One proven solution is Glovendor’s G360 Command Center which provides customized, best-practice programs for companies like yours. Just describe your unique requirements, including budgets, timelines, compliance needs and other essential information, and Glovendor experts will create the ideal supply chain for your company.
You’ll be able to share files, track project statuses, send messages, sign documents, complete transactions and enjoy dedicated support.
But Glovendor doesn’t stop there. They also provide a free audit to every client on their supply chain, as well as potential vendor options, risk analyses, timelines, compliance and technical notes, and more.
