Win More With a Supply Chain Strategy

The sexiest, savviest move a business can make could be to develop a supply chain strategy. After all, a significant percentage of small manufacturers don’t do it. That’s despite the advantages a supply chain strategy gives them.

According to US accounting firm Grant Thornton, small and mid-sized manufacturers are simply falling behind.

The firm surveyed 120 manufacturers in the US. It found that only 12 had a fully-implemented supply chain strategy in place.

For the rest, strategy is a work in progress. Forty companies reported having an informal supply chain strategy but struggled to measure its performance. Another 50 said they were still working on full implementation. Finally, 14 companies were simply struggling to implement the strategy they developed.

Make it Your Core

The reasons companies don’t have a supply chain strategy in place do not surprise us.

According to the Grant Thornton authors, smaller companies “tend to focus their energies on other areas”. This includes developing a good sales structure, marketing their products, and creating great customer service.

These are the same reasons companies give for postponing adoption of solutions to increase efficiency. The smallest companies, for example, will launch using the most expedient technology on hand. Then they realize that they are actually losing money by sticking to labor-intensive spreadsheets instead of cloud-based accounting and inventory management solutions.

The same is true for supply chain management. But the survey raised another great point about developing a strategy. While 78% of the companies implement a supply chain strategy to rein in costs (obviously a smart move), 50% see it as directly related to creating great customer service.

A strategy isn’t simply an exercise in efficiency. True, by optimizing the supply chain from suppliers to warehouse and 3PLs, you can make more money with less inventory. But, there is no one-size-fits-all approach. Your supply chain strategy must be integral to your business plan.

Consequently, a supply chain strategy won’t just help you achieve your business goals. But, because adoption is low among small businesses, it can give you a leg up over your competitors.

We have a great resource to help you differentiate your supply chain strategy from business rivals.