The Effect of Supply Chain Management on Your Business When it Goes South

There are many benefits to implementing a supply chain management system, from reducing overhead costs to mitigating risk. Although supply chain management has been around for 100+ years, its widespread recognition came in the mid-1990s as a result of globalization in manufacturing, particularly Asia.

The modern supply chain includes a combination of consumer needs and expectations, international intricacies, and other factors that can create significant challenges throughout the network. As technology has advanced, supply chain management has evolved into a complex process, one that needs constant evaluation in order to achieve desired results.

The Challenges of Supply Chain

Five of the biggest supply chain challenges include:

1. Increased costs. The rising price of fuel, raw materials, high labor costs from suppliers and manufacturers, and higher logistical expenses all contribute to increase costs. This results in mounting operational expenses and reduced profit margins.

2. Customer demand. Consumer choice has never been more prevalent than it is now. End users expect first-rate products and services with speed and accuracy. And if they don’t find it with you, they’ll find it somewhere else.

3. Supply chain intricacy. Many manufacturers are unprepared to meet the expectations of expansion and the shift of buying behaviors. This has, in turn, increased the number of steps in the process. The additional hands in the process can leave your organization vulnerable to error and oversight.

4. Speed to market. Customer demand must be identified and planned for early. Supply chain management is all about customer service – getting the right amount of the right product to the right place at the right time, whether it’s through just in time inventory or other processes.

5. International volatility. Suppliers and manufacturers are spread across multiple countries and time zones, not to mention multiple languages. To add to that, regulations, compliance and other supply chain logistics make it difficult to keep efficient and effective supply chains profitable.

What to Do When Your Supply Chain Goes South

As with any business operation, things can and will go wrong. When that happens, you need a contingency plan. Zirks was created to respond to the increasing demands of the marketplace.

Here’s how Zirks can help augment the supply chain:

• • • • Zirks loads full containers with 40,000 pounds of one item of finished goods from factories we know and trust

      • In doing so, we can drive down costs 40-50% compared to the minimum run

      • We can then pass along that purchasing power to supply chain managers

      • We manage factory relationships, paperwork and delays so you don’t have to

      • Inventory goes on sale through our online platform only after the boat has left the port, giving you faster access to products

      • You determine the price you pay based on how much you buy, your payment method and where it is on the water

      • Once it has arrived at port, we break down the container and ship it wherever you want it to go

By implementing Zirks to your supply chain, you can realize shorter lead times, larger cost savings and fewer logistical headaches. Try Zirks today!

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