Today’s supply chain business is more challenging than ever. There are endless things to consider, such as how to reduce costs, increase safety in the warehouse, and deliver products to customers faster, etc. Although the supply chain is a big business for many companies, the rise in the consumer electronic industry has brought a whole new set of challenges that are unique to its processes, functions, and data requirements. Depending on the industry you work in, the challenges you face could vary; however, there are some key challenges for supply chain management in Toronto and Vancouver that you should know about. Here’s how supply chain services can help you face these top challenges in the consumer electronic industry.

Short Product Life Cycles

Short product life cycles create an environment full of risk. There are so many changes that happen over the course of the life cycle, so you will need to carry extra inventory to make sure you have enough products on hand to meet your customer demand. Unfortunately, this means higher carrying costs and a greater risk to your bottom line if the product does not perform the way you expected it to.

To resolve this issue, you need to create several supply chain policies that show the changes in life cycle demand. With these patterns on hand, you’ll be able to compare your plans based on changes in prices and customer segments and/or new markets to find the best results.

Multiple Partners/Globalization

There are so many partners involved in a product’s journey from the raw materials to the product being delivered, which means you will need to collect and organize various sets of data. Strong visibility across your supply chain is paramount to ensure that you are not constantly reworking plans and dealing with communication problems between your partners and suppliers and yourself. A lack of visibility can also cause you to miss any discrepancies. You won’t be able to see a problem coming from far away—you’ll have to wait until it hits you.

To anticipate change and risk, you need a single, harmonious end-to-end network. In other words, you need to capture all master and transactional data with one system, capture details from your partners, and operate from that single source of information. This will reduce the time it normally takes you to gather current data and search for any issues that you need to resolve. It will also serve you well to set control limits on international standards, regulated compliances, and customs requirements, etc.

Slower Decision-Making

Everyday you must be prepared to deal with any possible problems that come your way. You will need to dedicate yourself to finding the right harmony between costs, revenue, and service. For this to happen, you need to collaborate with your coworkers, and unfortunately, getting on the same page isn’t usually the top priority. It can be a struggle to get everyone on your team in agreement. This inability to balance daily decisions can slow down the decision-making process, and hold you back when you need to respond to changes in supply, demand, or capacity.

Merger and Acquisition Activity

The slower your data integration process, the slower the pay off. Mergers and acquisitions are valuable in company expansion and the consumer electronics industry, but that means you need to consider a variety of enterprise resource planning (ERPs) systems. However, in the supply chain, these systems don’t usually work well together.

The faster you can merge data, planning, and analytics, the faster you will reap the rewards of your investment. You’re planning solution should be able to incorporate data and model the behaviour of multiple ERP systems. Once this data is collected, you can manipulate it, analyze it, and reduce your inventory and cost risks. With a current set of data, your plans will be more accurate and likely to succeed.

Demand and Variety

Consumer tastes and interests are more customized than ever before, and supply chains face the constant urgency to create new products to match the changing preferences of customers. This will lead to more SKUs and shorter product life cycles. Aspects like product development, sourcing, and fulfillment, are more complicated than ever before. Transportation costs are also higher. The better a company can manage their inventory, the better they can meet these demands.

Implementing a quality inventory management software (IMS) will allow you to track the movement of the products in your warehouse. It will provide information so that you can forecast which products you need to restock, and which items have gone dead. With this visibility, you will be able to make better decisions that will save you money and ensure that you are getting the right products to your customers.

Pricing, Logistics, and Other Cost Pressures

The competitive global marketplace has benefited consumers because it has brought in the latest and greatest innovations at lower prices. However, for supply chains, this has led to shrinking margins. Manufacturers in the electronic industry must find ways to deal with this downward pressure on operating margins and find ways to save money without compromising service.

How Lean Supply Solutions Can Help

As you can see, there are many challenges in the electronics industry. However, with the right support you can face these challenges head on and gain a competitive edge. Large businesses may have the manpower and resources to tackle the challenges of their supply chain, but how can small- to medium-sized businesses compete? The answer is simple: Partner with a third-party logistics provider that has all the capabilities necessary to give you that competitive edge.

If you are looking for the right company to partner with, Lean Supply Solutions is the answer. We rise to the challenge of meeting our clients’ needs through our services, which include product fulfillment, warehousing and distribution, e-commerce fulfillment, warehouse pick and pack, order fulfillment, and more. To learn more about outsourcing to our supply management in Toronto, or to ask any questions, contact us today.

Supply chain management (SCM) is one of the most valuable benefits to a growing business. It allows retailers to meet the demands and pressure of customers, optimize their processes, and reduce costs. But how does SCM provide these advantages? Here’s what you need to know about supply chain management in Toronto and Vancouver, and how it benefits the retail sector.

What Is Retail Supply Chain Management?

The retail supply chain includes the various processes a business uses to get its products to its customers. These processes include getting the raw materials to build the products, packaging it for delivery, and transporting it to the customer. Supply chain management optimizes these processes to make the flow of products faster and more efficient. The goal of any retail business is to get your products to your customers as fast as possible, while reducing costs on your end. Many businesses will turn to a third-party logistics partner that has the technology, software, processes, and manpower to optimize their supply chain for them.

How SCM Benefits the Modern Retail Sector

Reducing Retail Supply Chain Costs

To deliver products as quickly and affordable as possible, it is important to find out which processes cost the most and where revenue is being used inefficiently. Some of these areas may include your storage strategy, supplier relationships, analysis of customer demand patterns, and the speed of moving supplies. Improving these areas can produce significant cost savings.

Optimize Inventory

Your inventory is money sitting on your shelves, and if you are improperly using your warehouse space or failing to restock in time for customer orders, you could be losing revenue and hurting your business’ reputation. SCM allows you to review your inventory levels in real-time, so you can make sure your stock balances with your needs. It also enables you to work better with your suppliers to focus on demand planning and forecasting you can stock up on the right items, and stop ordering dead or out-of-season products.

Omnichannel Operating Model

Over the past few years there has been a shift in customer buying patterns. Brick and mortar stores are expected to integrate the way customers interact with their products in person and online. This integration of digital and physical shopping avenues is possible through an omnichannel operating model. By using technology to manage warehousing and transportation, customizing the consumer experience, offering better and faster shipping, and tracking, the customer can have a seamless experience with your business.

Minimize Risk

When it comes to mitigating risk, collaboration is key. But you cannot produce or analyze information properly without visibility. SCM helps you to review your processes so you can catch issues early on and proactively resolve them.
Forecasting Techniques and Methodologies
Generating forecasts is key for planning and making the right decisions about budgeting, sales, marketing, raw materials, production, risk assessment, and more. Forecasting is a feature of SCM that is performed on a regular basis and it offers a variety of benefits:

• Improves supplier relations and purchasing terms
• Better use of resources
• Optimizes inventory levels
• Improves distribution planning and logistics
• Boosts customer service levels
• Facilitates performance management

Compete with the Big Players in the Market

SCM used to be intended for big companies, but even small- to medium-sized businesses can stay competitive with the help of these programs. SCM through third-party logistics enables smaller companies to improve their processes, find cost-effective solutions for transportation, gain access to better inventory management and on-time delivery, and more.

Customer Satisfaction

Customers expect great service and that comes down to getting the products they ordered on time. If problems arise, customers expect transparency to understand what went wrong, and how the business is working to resolve it. If you are unable to make your customers happy or resolve their issues in an efficient manner, you risk negative reviews and a dent in your reputation. Nowadays, dissatisfied customers can easily go online and post criticisms about your business or service. It is more important now than ever before to focus on implementing SCM to improve customer satisfaction.

Healthier Supplier Relationships

To succeed in the retail industry, your business needs to have successful relationships with its suppliers. Both teams work together to improve the efficiency of the work you do together, so the better you can communicate and manage your own processes, the better you can resolve conflicts or issues in the future.

Hire Lean Supply Solutions to Manage Your Retail Supply Chain

Even if your business is smaller, SCM is still something to consider. While the aforementioned benefits clearly apply to larger companies, your company can also benefit from these points and gain a competitive edge. SCM can help you improve your budget, inventory prices, and your customer experience.
Working with a 3PL provider can help you deal with the challenges of a growing business. With their supply chain services, they can manage all the tasks above so you can have peace of mind and focus on other core responsibilities. A 3PL provider will also offer you many advantages such as supply chain management software and technology that increase visibility and communication between you and everyone in your business network.
If you are looking for the right company to partner with, Lean Supply Solutions is the answer. We rise to the challenge of meeting our clients’ needs through our services, which include product fulfillment, warehousing and distribution, e-commerce fulfillment, warehouse pick and pack, order fulfillment, and more. To learn more about outsourcing to our supply management in Toronto, or to ask any questions, contact us today.