Mastering supply side - Why it is important

Tom Peters, a famous American author, was right when he said, “Leaders win through logistics. Visions, sure. Strategy, yes. But when you go to war, you need to have toilet paper and bullets at the right place at the right time. In other words, you must win through superior logistics.” Supply chain is a crucial part of business success. The journey from idea creation to product is a complicated process with many moving parts, but what matters more is how well a company manages this process. It is what directly translates into increased revenues and profits. A genuine win is when you provide your customers with what they need in as little time as possible. This can happen only when you have a seamless supply chain built on the foundation of significant data and value-adding product/service that helps leaders ascertain different processes — from supply to delivery.

A seamless supply system encompasses proper designing, planning, execution, controlling, and monitoring which ensures that goods and services are delivered first to your warehouse and then to your customers promptly at the lowest cost. It is the result of coming together of well-planned inventory planning based on the location and region of your target customer that helps maximize value and achieve sustainable competitive advantage.?

Most entrepreneurs start their businesses with big dreams, limited resources, high risks and ambition of high rewards. But only the ones that master their planning, and especially their supply side beforehand, are the ones that move on to grow their business exponentially with time. Why? It is because a well thought and managed supply chain (including product cost) can significantly reduce a company’s operating expenses and drive profits. This efficiency will be reflected in every aspect of the chain, from idea creation to the final product marketing. Over the years of mastering this skill, we have helped many clients identify cost-reduction opportunities and increase profit by assessing the target market, determining risks and developing plans to overcome future challenges. Both an excess inventory and a lack of inventory will kill your business. In a tech platform business as well, Supply Side is as critical for success as it is in a product space.?

Let's take the example of Uber - when it started, they wanted the supply side mastered. To accomplish this, they onboarded multiple drivers and created an excess inventory. The excess inventory led to a reduced wait time for customers and availability of cabs at all times in all the important locations. All this created a wow for the customers and led them to shift from general taxis to Uber all over the world while also recommending the service to other friends.?

Just like Uber, Zomato too ensured mastering its supply side. It started as a food directory service and grew to become the largest restaurant directory in Delhi NCR in months. It became the go-to resource for customers and business owners alike with its vast amount of data on the supply side. After a couple of years, Zomato rebranded itself into what it is today - the most sought-after food delivery app. To reach this level, it onboarded multiple delivery partners and partnered with various restaurants to provide customers with ample cuisine choices and delivery in as less time as possible in numerous locations. In fact, it added 3,000 new restaurants and delivery partners in the first three months of FY23. In time, it expanded itself into being more than just a food delivery app with its dining-out offerings and restaurant discovery services.?

Before introducing a new feature and upgrading their app, they mastered their unlimited supply side - either be it onboarding restaurants for delivery or dine-out or signing up partners for delivery. This led to abundant choices for their customer and created a seamless brand experience.?

Chat GPT is another example of creating the largest word of mouth for a tech business. The large database it has created has enabled AI to answer all possible questions that an individual can have. Have you tried it?

In the end, I would like to say that by continuously striving to perfect every aspect of your supply side with improved services and upgrades, you put your business on a growth trajectory. Helping clients master their supply side (in the consumer product space) and create a one-stop shop for their customers is one of the ways we accomplish our mission of assisting at least 91 companies become happy and meaningful unicorns and building a million happy companies.