A different perspective on solving supply chain challenges
Lancaster University Management School
Lancaster University Management School (LUMS) is a quadruple-accredited, world-ranked Management School.
Business owners have been working around the clock over recent years to continue to meet customer demand amidst ever more challenging supply chain issues.
But is working harder and longer the only option?
As international events continue to pressurise worldwide product supply now is an ideal time to consider whether it’s sustainable to continue doing what you’ve always done.
Instead, perhaps there’s a different way…
The next Business Excellence programme from the Lancashire and Cumbria Forum is on the theme of ‘Resilient Supply Chains’ and will work through these solutions and many more.
The programme is fully-funded and delivered online over three half-days to help product-based Lancashire and Cumbrian SMEs boost their profitability, reputation and customer service through better supply chain management.
Perhaps working harder isn’t the only option: a different perspective on solving supply chain challenges
Owners and directors of product-based businesses, how have you been coping with supply chain headaches recently?
At LUMS we work with many SME leaders who have been sharing their experiences of…
So if this sounds familiar to you, be reassured that you’re not alone.
The pressure to meet customer expectations
We all know how Brexit, Covid, HGV driver shortages and even, sadly, the war in Ukraine, continue to squeeze global supply chains.
It means leaders and colleagues in all manner of businesses have turned themselves inside out to fulfil customer expectations of speedy delivery, plentiful stock and extensive product ranges.
It’s a testament to the commitment business leaders have to fulfilling their customer promises.
But is it sustainable?
Recent pressures may seem exceptional. Yet we’re seeing once-in-a-century events every other year.
The reality is that our ever-more complex, interconnected and global supply chains are increasingly sensitive to world events.
Acknowledging this means waking up to the uncomfortable truth that this isn’t one coincidental blip after another.
It’s a pattern. And one that isn’t going to change any time soon.
The new normal
With this in mind, as an SME business owner or director are you prepared to continue to simply ‘get by’ as you have been doing? ?
Or is now a good time to think about whether changes in how you approach stock management and marketing could put you on a firmer and more confident footing for the future?
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For example, what if you could turn product scarcity into a selling point? A positive marketing tool that could increase the value and demand of your product, help close sales, increase spend-per-transaction and reward loyal customers.
The scarcity principle: from supply chain challenge to sales opportunity
This might all sound overly optimistic. A bit pie in the sky.
But here’s how the scarcity principle can play out in reality:
1.??????Highlight limited stock lines
Websites often tell you that there’s ‘only one remaining’ of the product you’re looking for. This information can help buyers who are wavering to commit before the final product is snapped up.
2.??????Don’t shy away from communicating long lead times
If a customer will have to wait ten weeks for an item if they don’t buy it today, tell them. The information can help give a rightful sense of urgency about a purchase.
3.??????Focus on higher-margin sales
You’re a car manufacturer and have only got ten semiconductors remaining. Do you fit these into your lower-end hatchback or your most prestigious top of the range model?
Your choice could increase your profits if you focus on getting higher-margin products out of the door.
4.??????Review your range
Are all your product lines worth the time you spend managing them? Using insight to review which are the most profitable can help you to decide whether more really is more when it comes to customer choice. It could be more productive to hone your inventory and specialise.
Help in choosing the right tools
The right way tool for you will depend on your product and market.
So, it might be useful to have a little help in deciding on the right strategy.
Fortunately, fully-funded, expert business advice is available via Lancashire and Cumbria Forum programmes, delivered by us at LUMS.
Our upcoming Resilient Supply Chains programme is designed specifically to help the owners and directors of Lancashire and Cumbrian SMEs to increase profits through more manageable and sustainable supply chains.
Delivered by business expert Mark Prince, the programme will help you find advantages in your new supply circumstances, consider strategy in the context of elongated supply chains and redefine supply success in your business.
Get fully-funded support to become more profitable
Resilient Supply Chains is delivered online via three half-day workshops and is designed to be short, practical and impactful.
It’ll give you the time to step away from the day-to-day running of your business and reflect on your strategy – moving away from fixing the unfixable supply chain and onto profiting from it.
It’s fully funded for eligible small and medium-sized (SME) businesses and is highly interactive to help build meaningful relationships with fellow business leaders.
Our next programme starts on 12 May. Find out more and register online.