WayPoint Logistics: Why the Supply Chain Matters to your success
You started your business in order to work for yourself and make money doing something you enjoyed. Most people don’t start a business with a goal of leading a mediocre life. People striving for success yearn for the day they can sit back and let the money roll in. A successful business owner’s greatest talent should be managing the people working for him and the key to great management is a high-performance supply chain.
If you’re just starting out in business you have a terrific opportunity to lay the perfect supply chain management foundation now, while you are just getting up and running. Your goal is to be up and running efficiently and seeing organic growth by the time you have been in business for five years and Waypoint Logistics can help make that happen for you! Let us tell you why the supply chain matters most for a successful business.
The Statistics Don’t Lie
In 2014, Deloitte completed a study that showed 79% of businesses that had high-performing supply chains also saw an increase in revenue growth that was much greater than their competitors. Nearly half of all business fail in the first five years and most of the fault, in many cases, lands in poor supply chain management. Financial problems also close many businesses down before their prime due to rising costs in global supply chain which generally attribute to 90% of the business expenses.
Customer Service Depends on Supply Chains
If your business ships products to customers, your customer service scores are going to mostly rely on your supply chain. Your customer is not going to be happy if their product arrives late, damaged, or doesn’t arrive at all. Poor supply chain management can lead to bad reviews, unhappy customers, and a decrease in business. Over 90% of customers who have an unpleasant experience with your business will never purchase again. Almost the same percentage of customers are willing to pay more for products if the customer service is better.
These supply chain performance issues are the most likely to lead to a dissatisfied customer:
- Long delivery times
- Delays in shipment or delivery times
- Delays in customer service responses
- Inventory shortages or outages
- Poor product quality
- Damaged product upon delivery
If your business has been receiving complaints in these departments, Waypoint Logistics is the perfect place to start finding a solution to these concerns. Order fulfillment services will help you achieve your core business objectives.
Supply Chain Costs Affect Profit
Your business isn’t successful if you aren’t turning a great profit and much of that profit is dependent on your supply chain costs. Retailers often get stuck purchasing or renting warehouse spaces that are much larger than they need because Christmas season spikes in sales make it so that you need a larger space for 2-3 months of the year. That need for a large space for just a fourth of the year means that the other three quarters of the year you are losing money on warehouse square footage. Waypoint Logistics warehousing solutions enables business owners to be flexible within their space and budget.
Knowing and understanding the impact of excessive transportation costs as well as costs associated with inventory storage, procurement, and supply chain waist is another way that Waypoint Logistics can help business owners make a profit and manage their supply chains efficiently.
Supply Chain and Business Reputation
Your reputation greatly depends on your ethics and corporate responsibility. Many brands are seeing a detrimental blow to their reputations due to unethical practices by suppliers. You should always know and understand your supplier’s ethics and procurement standards and be able to rely on their integrity.
Your inventory is also going to have a significant impact on your reputation and working capital. Business owners need to be concerned about these things when thinking about their inventory practices:
- How can you improve forecast accuracy to reduce costs of safety stock?
- How can you reduce inventory storage costs?
- How can you speed up customer delivery times?
- How can you shorten lead times from suppliers?
- How can you improve inventory shrinkage?
Waypoint Logistics offers inventory management solutions as a Third Party Logistics company that keeps every business owners specific needs in mind. We can create customized service plans that include inventory control, inbound and outbound processing, order picking, cycle counts, physical inventory and KPI tracking.
At Waypoint Logistics, our goal is to help your business profit through supply chain management and logistics. We specialize in transportation management and excel in final-mile solutions for any size business.