- October 4, 2019
Debunking Myths for Supply Chain Management
Six common myths about supply management software can often steer those in business, potentially, in the wrong direction. Supply chain operations have a long-standing emphasis on the importance of strategies such as “just-in-time” and “lean manufacturing” and “off-shoring.” However, these ideas may not always address the concerns of your business with recent changes in the global economy.
Cost Reduction No Matter What
Essentially, there are two ways that you can increase your company’s revenue stream, either increase incoming sales or reduce your costs. Increasing sales can be difficult. It requires you to add value to the products and services that you offer by either increased cost or increased customer base. This is why reducing your costs is the natural mode of thinking for many business owners. Contrary to popular belief, however, reducing the costs of running your company can actually be harmful. Lower costs can lead to lower quality. Depending on your industry, this could result in catastrophic damages in the long run if you sell faulty products to customers.
This is why many retailers are looking to Supplier Management Software in order to solidify business relationships with reliable vendors to source quality products at sizable margins.
Flexible Manufacturing Facility
It’s popular to create manufacturing facilities with the ability to produce a wide array of products to suit customer demand quickly. However, this strategy is a high-cost investment due to the initial cost of the facility and may not yield the profit that your company is seeking if you aren’t able to keep up with demand fast enough.
The Same Strategy for All Customers
As easy as it may seem, initially; it’s not recommended to use the same strategy for all of your customers. Each customer is different and may need different products and services you can offer. Some may need more customized solutions, while others may find cheaper products and services more appropriate to their needs. Ensure you reach your desired customer base by having multiple strategies going at once.
Use the Latest IT Solutions
While IT solutions can often provide helpful tools such as the best supply management software, it’s not always the right time for your company to buy all of the latest options out there. When you implement a new system, there can be issues that may cost you in lost sales and initial costs. In addition, not all IT solutions are created equally, even when they’re brand new to the market. Prior to the start of any new technologies, be sure to complete thorough research.
Ignore IT Options, Stick With the Tried and True
On the contrary, it’s not recommended to ignore IT solutions in their entirety. Tried and true technology methods can be largely beneficial to your company. These methods are also often more affordable than their newer counterparts. When you use supply chain management tools that have been used for years, you know they will work for what you need.
Corporate Social Responsibility as Charity
While many people in business use corporate social responsibility as charity, it can also be used as a solid supply chain strategy. You can incorporate a social cause directly into your products and services to attract new customers and even attract an entirely new customer base.
Is your business in need of supply management software to get back on track and reach your goals? Contact CBX Software who offers nationwide services. They’re your go-to for all of your software needs.