Supply chains play a crucial role in making profits for small vendors and retailers. There are a lot of things that can possibly go wrong if proper management is not in place. Whether it is due to late acquired items, lack of inventory, or poor logistics, inefficient retail supply chain management will be bad for the business.
There are 5 simple steps in which you can make sure that everything is managed properly and you can master some effective strategies to optimize your retail supply chain management.
- Correct inventory levels
Inventory levels can actually make your and your customer’s life easier. It can avoid a lot of confusion and extra downtime. The longer you make a customer wait while searching for an item, the more he would get frustrated.
Opt for an inventory management system that tracks real time data to avoid this hustle.
- Building relationships with suppliers
A supplier relationship can make or break a business. It would consume a lot of your time as a trailer if you are always fishing for new suppliers. An important rule of retail supply chain management is to think of your suppliers as your alliances. Pay your bills on time so that your suppliers can trust you.
- Managing Logistics
Transportation plays a crucial role while building a successful retail supply chain managementsystem. As a retail business owner, you need to make sure that shipping goods is always treated as if you are sending goods within business. Goods in transportation are your responsibility till they reach the customers.
- ERP softwares
Sure, technology can have its own advantages and disadvantages, but investing in a good ERP software can come in handy for your business. So many retailers are implementing this in their business for daily usage. This is a tool that lets you comprehend the visibility of your supply chain from demand forecasting, inventory checking, procurement, shipping, to product return.
- Periodic reviews
There are processes that can turn out to be an issue and bottleneck for your retail business. You should meet your supply chain team and review your procedures and policies to ensure efficiency and effectiveness. This will not only create transparency but also reduces the risk of thefts and frauds.
With cooperative planning, both retailer and vendor will realize not only predictable revenue, but revenue that maximizes profit due to efficiencies and economies of scale. Consumers will also benefit due to the same factors- more product quality due to better sourcing, lower costs due to larger buys, etc.
