Logistics is an important part of the success of your small business, but is often not taken seriously enough. If the products your business needs are weeks or even months late, it could mean the difference between success and failure.
The Cost of Being Late
To manage your inventory and time effectively, deadlines must be met. The most successful companies have visibility on every step of the delivery process. This visibility makes timely decisions easy and communication with customers and vendors simple. The reality is, top performers spend 3% less in logistics compared to more poorly managed companies, but they have a 96% reliable delivery rate to customers and from their suppliers. The least effective companies actually spent 8% more than average on logistics but only have 71% reliability on delivery to customers.
The Importance of Supply Chain Visibility
Your business will be managed more efficiently when you can track every stage of the supply process. Disruptions, delays, and unforeseen events of all kinds are routine events, but you can make swift decisions to mitigate the effects if you can see what is happening in real time. This can save you from losses in sales, late delivery, and damaged products. It also enables you to avoid stockpiling inventory because you cannot be sure of when you will have an item on hand and when you will not. If you are actively engaged in the ebb and flow of supply and demand, such concerns will not arise.
Build a Loyal Customer Base
If you are able to predict and respond to shifting customer demand in timely manner, you will gain loyal customers and beat out the competition. The internet has changed the global economy; nowadays, consumers have come to expect to find what they want at a good price and have it delivered quickly. When you have access to online tools or software that can show shipment status, it saves you time, makes the customer happy, and you get paid faster.
Making an investment in supply chain visibility is a necessity in today’s fast-paced business world. When you have real time information on your shipments, you reduce costs and worry at the same time.
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