When anyone starts a new business, the ultimate goal is always to expand and grow. Achieving that is no small feat. It takes consistent effort and time to grow from a small business to explore new horizons. As much as you want to relax and celebrate your win, this is no time to slow down. When your business starts to take off, there are a million other tasks that need to be taken care of. One of the major hurdles you would have to face while scaling your business is supply chain complexities. In this article, we will explore ways to scale a business efficiently while handling supply chain problems.
How to scale your supply chain as your business starts to grow?
As your business starts to evolve from the early stages of a startup to an established business, it is important to think of innovative solutions to your problems. Scaling a business presents complications in making decisions related to the supply chain. You have to handle a large volume of incoming orders and deliveries, provide the customers with real-time updates and strike a balance between speed and cost. Ideally, you want to scale your business to increase customer satisfaction and minimize costs. While scaling the supply chain, you have to focus on improving your existing capabilities like better order fulfillment, customer service, B2C last-mile planning. Following are some ways you can achieve that –
1. Concentrate on the customer
The success of your business ultimately rests on the satisfaction of your customers. Thus, the first step in managing a growing business relates to providing excellent customer service. It has been found that when a customer faces a service-related problem, they end up switching to a competitor. When the scale of your supply chain starts to grow, problems are bound to crop up. Automating your business processes can help you manage some of the issues that crop up. A last-mile delivery software can help in providing your customers with real-time updates on the order.
2. Gain visibility into the supply chain
While the first step of managing the growth of your business is concentrating on the customer, the next thing you have to do is manage the complexities of the supply chain. This can be done by ensuring that your business has visibility into all the supply chain processes. For instance, implementing an inventory management system can help you track inventory levels as they move through the various stages. Your inventory management software gives you greater visibility as well as the ability to track incoming orders and inventory in real-time, preventing backorders, stockouts, and overpaying carrying costs.
The more visibility you have in the supply chain process, like the schedule of the delivery, the transportation route, etc., the easier it would be to solve the problems. Greater visibility allows you to respond to the demands of the customer more efficiently. It ensures that your business continues to grow.
3. Expand the supply chain network
When your business starts to grow, you will be faced with a large number of incoming orders. To fulfill these orders, it is important to expand your supply chain network. By expanding the supply chain, you will be able to efficiently handle a large number of deliveries and ensure that there are no failed deliveries and minimum returns. The trick to expanding your supply chain is scaling the distribution network according to your customer base.
4. Outsource to a 3 PL
When you are scaling your business, you would need to consider if your current capabilities are efficient enough to provide service to your customers. If you find that you are having difficulties in balancing between speed and cost and combining the execution data with the planning recommendation, outsourcing to a 3 PL would be a good idea. A third-party logistics provider essentially specializes in different areas of the supply chain. With the help of 3PL logistics planning, you would be able to efficiently scale the supply chain of your growing business.
By using the aforementioned tips, you will be able to efficiently handle scale in business and scale your supply chain processes in tandem. Automation is something that can help you in this process significantly. If you want to automate, optimize and digitize your logistics to improve efficiency, then Mojro is the place for you. To know more, visit our website today!