Running a small business in today’s volatile market is tough. Small-to-medium-sized businesses (SMBs) face stiff competition not simply among themselves but also from well-established brands with far greater resources. After the global pandemic, the world was transformed, and so was business. People left the workforce in droves. Empty store shelves were the norm. Consumer preferences changed.
Global events such as the pandemic, natural disasters, or political instability can significantly disrupt supply chains. SMBs, with their limited resources and alternative supplier choices, are more vulnerable to such disruptions. They will struggle to manage inventory, meet customer demands, and navigate changing trade regulations and logistics.
With the pandemic declared over, SMBs still face challenges such as hiring and retaining talent. They may find it difficult to attract top talent due to limited budgets, lack of brand recognition, and competition from larger companies offering better compensation packages. Retaining employees can also be challenging if SMBs cannot provide growth opportunities or competitive benefits.
Polakoff Says... |
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| Consumer behavior evolves rapidly, influenced by emerging trends and shifts in preferences, leaving some businesses with too much or too little inventory. |
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Keeping up with consumer tastes while maintaining cost-effectiveness can also be challenging for SMBs. Consumer behavior evolves rapidly, influenced by emerging trends and shifts in preferences, leaving some businesses with too much or too little inventory. SMBs must stay tuned to these changes and adapt their products or services accordingly.
But there’s good news, too. While SMBs face continuing challenges, they also have the advantage of agility, flexibility, and the ability to innovate quickly. New supply chain technologies can help SMBs play a more transformative role in shaping the basis of competition.
What Advanced Supply Chain Technologies Can Do For SMBs
Supply chain systems built specifically for SMBs can automate and streamline processes for business operations, reduce manual error, enhance efficiencies, and lower costs. Advanced supply chain systems offer analytics, demand forecasting, inventory management, transportation management, and visibility tools that allow SMBs to optimize their operations. The efficiencies gained from these technologies enable SMBs to offer competitive prices and faster delivery. Ever wonder how Wal-Mart could be a supply chain leader and advertise, “The low price…always?” Premium service and low price are usually at odds with one another. The answer to this riddle is advanced supply chain technology.
Real-time visibility into inventory levels, order status, and shipment tracking enables SMBs to monitor and manage their supply chains more effectively. They can proactively identify bottlenecks, respond to disruptions, and make data-driven decisions. With a clear picture of their supply chain, SMBs can provide accurate delivery estimates and promptly resolve issues, greatly enhancing customer satisfaction.
Advanced supply chain technologies such as data analytics, AI-powered demand forecasting, and customer relationship management (CRM) systems help SMBs gain insights into customer preferences, buying behavior, and demand patterns. With this information, SMBs can tailor their offerings, optimize inventory, and deliver personalized experiences, gaining a competitive edge over larger rivals.
Supply chain technologies significantly reduce barriers to entry and expand the reach of SMBs into global markets. Supplier marketplaces connecting buyers and sellers worldwide enable SMBs to access a wide range of supplies and suppliers offering competitive prices and services. As business needs change or expand, SMBs can easily explore and onboard new suppliers from the marketplace, ensuring they can access the right resources at the right time. This scalability allows SMBs to adapt their supply chain to meet evolving customer demands and business growth.
Cloud technologies help SMBs get up and running faster than traditional, enterprise-level systems. SMBs don't need to hire an IT team as cloud-based systems are deployed, implemented, and supported by the vendor. This allows SMBs to quickly reap the benefits of new technology at a much lower cost.
For many SMBs struggling with limited budgets and lack of IT infrastructure, freemium software can be the answer. With freemium software, they can start managing, for example, transportation processes. While freemium software offers limited functionality, it is easily upgraded. Supply chain systems designed specifically for SMBs offer more affordable pricing models, such as subscription-based models or modular features, allowing SMBs to select and pay for the functionalities they need most.
Supply chain technologies can level the playing field for SMBs by empowering them with enhanced efficiency, improved visibility, global market access, and quicker ROI. By leveraging these technologies, SMBs can compete effectively, differentiate themselves, and thrive in today's increasingly competitive business landscape.
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