Supply chain management, or SCM, is the process of managing and transforming all of the inputs that your business needs so you can successfully create products or provide services, attract and satisfy customers, and compete in your market.
Giant corporations that can buy up entire container ships full of supplies have a lot of power in the supply chain, but small businesses aren’t out of luck.
“[Small businesses] can benefit from the supply chain … but they have to do it differently,” says Steven Melnyk, professor of supply chain management and operations management at Michigan State University. “You have to be agile. You have to work with companies. You have to develop relationships.”
Here are answers to some common questions small-business owners might have about the supply chain and supply chain management.
What kinds of businesses need supply chain management?
Just about every kind of business needs supply chain management. “Unless your market and source of supply is local,” Melnyk says, “you will be impacted by the supply chain.”
Small-business owners are feeling that impact. In a November 2021 survey by CNBC and Momentive, 75% reported rising costs for supplies and 58% reported supply chain disruptions when asked about their current experiences.
The manufacturing, construction, retail, accommodation and food service industries — all industries with large numbers of small businesses — report the highest rates of supply chain disruptions in ongoing U.S. Census Bureau surveys that measure the effects of COVID-19 on small businesses.
Supply chain management can help mitigate disruptions to your inventory and make small businesses of all kinds more effective, efficient and competitive.
What are the benefits of supply chain management?
Here are some of the benefits small businesses can achieve from supply chain management:
Avoiding disruptions. For example, a cafe specializing in imported coffee could stockpile extra inventory or prepare to change the menu in case of shipping delays.
Efficiency. For example, a siding business could monitor demand and only keep on hand materials for the most popular colors and styles. The business could purchase only the necessary amount of materials for each job when buyers custom-order other products.
Quality control. For example, a farm-to-table restaurant could coordinate with a variety of local suppliers to buy peak in-season produce, meat and dairy throughout the year.
Sustainability. For example, an apparel store might highlight responsible and ethical business practices by using materials with low environmental impact, paying textile workers fair wages and making durable clothing meant to last longer than “fast fashion.”
What are the five functions of supply chain management?
Melnyk calls supply chain management “the foundation of competitive advantage.” Your business can gain a competitive advantage through five key functions of supply chain management:
Managing flows of goods and information.
Identifying and developing your core competencies.
Building relationships with critical customers and suppliers.
Recognizing and working within your financial limitations.
Refining your business model to meet customers’ demand.
How can small businesses get started with supply chain management?
“If you’re a small- to medium-sized company, what should your major goal be? Make credible promises that you can realistically deliver on,” Melnyk says, “which means you have to know your capacity. You have to have the data. You have to manage your processes. You have to understand scheduling. Those are big foundations.”
There are several questions small-business owners need to be able to answer, Melnyk says:
What are your key capabilities? The answer can illustrate what your business does best and what inputs you need to make it happen.
What’s your key customer? The answer can tell you whose demand you should prioritize meeting with your supply.
What’s your brand promise? The answer can help you define yourself to customers and differentiate what’s necessary for your business versus what’s nice to have.
Who are your key competitors? The answer can help you figure out what you’ll need to do to compete. Can you be more sustainable? Innovative? Efficient?
All of the answers can define what’s crucial for your supply chain. For example, you can identify critical suppliers and prioritize those relationships, secure backup sources for crucial materials, or work on expanding your capabilities to meet customers’ demand.
Trade groups such as the Association for Supply Chain Management and the Council of Supply Chain Management Professionals offer training to help you get started. Many colleges and universities with business or supply chain programs also offer courses and certifications, including online and other programs aimed at business owners.
What tools should small businesses use for supply chain management?
“You can do things without investing a lot of money,” Melnyk says. Tools you may already be using can contribute to supply chain management.
Inventory tracking helps you keep an eye on what you have in stock and what might be getting low. Many POS systems have inventory tracking built in, and there are also dedicated inventory management apps.
Sales analytics helps you identify trends in what’s selling so you can anticipate future needs, expand on what works and consider scaling back less successful offerings.
Customer relationship management, or CRM, helps you track and communicate with your customers so you’re ready to meet their needs and keep them coming back again and again.
Small businesses with well-thought-out business models can best take advantage of these tools. “Technology is spice. It’s an enhancer,” Melnyk says. “It makes a bad process worse. It makes a good process better.”
How can small businesses compete with larger companies in the supply chain?
“Small companies have got to understand that they don’t have the buying power,” Melnyk says, “but what they do have is the ability to compete on other dimensions.”
Small businesses can be more agile than larger ones, adapting on the fly to market conditions and the state of the supply chain. When small businesses throughout the supply chain work together, they can be especially effective at meeting customers’ needs for responsiveness, innovation, ethics, sustainability and sourcing.
Shopping Video – New Marketing Trend
One of the best ways for marketers and business owners to increase sales and engage customers is video shopping. This new marketing trend involves using video content to promote and sell your products.
Here is everything you need to know about shopping videos for business owners.
What is Video Shopping
Video shopping involves using video content to promote your products/services with the aim of increasing sales. With a shopping video, business owners can show off their brand and give relevant information about their products and services. Also, videos help influence the decision-making process of buyers and increase sales.
Types of Shopping Videos
There are two main categories of shopping videos, and they are:
Live Video Shopping
This type of video shopping involves creating a live presentation of your products. It is not pre-recorded, thus making it easy for customers to interact in real-time.
Non-Live Video Shopping
In this case, you record the video and then upload it on platforms where customers can find them. While you can’t get real-time responses from customers, non-live videos are easily accessible, unlike live videos.
Benefits of Video Shopping
Video shopping can provide many benefits for business owners and their customers. Some of the advantages of video shopping are:
1. Engaging Visuals That Increase Sales
Consumers generally prefer video content over text because they are a more expressive form of content. With video shopping, business owners can create an interactive environment where customers can engage. This form of engaging content increases your chance of converting visitors to actual customers.
2. Increase Brand Awareness
Business owners can increase the chance of being seen by their target audience through impressive shopping videos. Shopping videos prove to be a convenient way to promote your business and increase brand awareness.
3. Convenient Customer Interaction
Video shopping helps engage with customers in real-time, thus making them feel seen. You can chat with customers one-on-one, which makes it easier to serve their needs. Whether it’s a car dealer chat or a skincare consultation, you can count on video shopping to improve rapport.
4. Bring Products to Live
With video shopping, shoppers can easily browse products in real-time. For example, fashion brands often bring clothes to life by making a video of how it looks on a real person. This will help customers have a feel of how the item will look on them, and this can increase sales.
5. Easy to Create
Creating shopping videos doesn’t have to be a long and complicated process. Shopping videos tend to be short and easy to make without requiring a professional. With a smartphone or camera, anyone can make a marketing video that converts. Also, there are many channels and platforms available to create videos that will persuade visitors into being actual customers.
6. Increased SEO Ranking
Videos tend to perform better than other forms of content, and having them on your website will increase your SEO rankings. This makes it easy for customers to find you and do business with you.
If you are running an online business, you need to keep up with new marketing trends to boost your brand. One of the latest marketing trends to implement is video shopping. When done correctly, video can help provide valuable information for customers, boost engagement, and increase sales.
In Business, Image Matters. How to Improve Yours?
Your business may boast of excellent products and/or services. However, nowadays, excellent products and services simply aren’t enough to help a business survive and thrive in the long run. What your business also needs is a strong image – one that can help it stand out from its competitors.
But how exactly do you go about improving the image of your business? To know the answer to this question, read on as we take you through all the steps you can and must take to take your business forward towards success.
1. Face-to-face interactions with people
We may be living in the digital age, but nothing can beat face-to-face interactions when it comes to telling people about your business. Here are some ways through which you can inform people about your business and what it’s all about:
Meet people and start conversations
It’s unrealistic to expect that people will know about your business if you don’t reach out to them. So, start going out and attending events.
Business-centric open meetings and conferences would be the best place to start. At these events, you’ll run into several businessmen like yourself. You should make the most of these opportunities to start conversations with others from the world of business. This will gradually let people know about your business and the products and/or services it has to offer.
Prepare a pitch
When you meet potential customers, you have to be prepared to speak spontaneously about your business. At this juncture, it’s important that you don’t fumble or sound unconfident. After all, what you tell people about your business will form impressions in their minds – and you’d want those impressions to be positive, wouldn’t you?
This is where preparing a pitch can come in incredibly handy. Write it down first and then keep practicing it out loud, and make changes where necessary.
Participate in community events
Your local community is the first pillar of support for your business. So, get out there and try playing a role in all community events. At these events, you should promote your business in a friendly and welcoming manner.
This should encourage members of your local community to take an interest in your business and what it has to offer. Sure, this may not result in immediate sales, but it will definitely improve your business’s public visibility.
2. Make your business appear professional
A surprising fact is that the modern-day consumer values professionalism more than the quality of products and services. Of course, product and service quality is important, but if your business lacks professionalism, it will lose out on customers.
So, to make your business appear professional, you can put the following steps into practice:
Invest in a business website
The internet is arguably the biggest platform for businesses nowadays, which is why you should invest in a dedicated website for your business. We recommend hiring professional web developers and designers to curate your business website. This will ensure that your website looks and feels professional.
Apart from setting up a website, you should also pay attention to its content. Quite simply, it should have all the information that your target audience may want to know, i.e., contact information and information about the business. Your business website should also have a blog with consistent posts. This can go a long way towards ensuring your expertise within your niche.
Set up a dedicated email account for your business
Using your personal email account as your business’s email account is nothing short of a criminal offense. That’s why you should set up a dedicated business email account. It’ll help you achieve consistency with your branding, and it’ll also allow your business to look professional to the people who subscribe to your business newsletters.
To set up a business email account, you need to first create a domain name and then get in touch with an email provider. Two of the best email providers out there include Office 365 for Business and Google Apps for Business. Both options provide business-class email along with features such as online storage and document editing. The best thing about these options is that they’re quite inexpensive.
Provide 24/7 Customer Service
These days, consumers expect the companies they buy products and services from to be available for them 24/7. Fortunately, the widely availble virtual assistant and reception services such as those provided by www.virtualreception.com.au can do that for you – both on and off office hours – to any types and sizes of business, from freelancing digital nomads to multinational corporations.
3. Set up your social media for success
Social media platforms such as Twitter, Instagram and Facebook are excellent places to market your business and its products. Here are a few ways to make your business succeed on social media:
Create business profiles
On all major social media platforms, you have the option of setting up personal profiles and business profiles. It’s best to create the latter type of profile as it is designed specifically for business purposes.
During the setup process, make sure that you include relevant info in the bio sections. Don’t forget to add links to your official website and other social media handles as well.
Post relevant content regularly
All social media algorithms tend to favor accounts that post relevant content on a consistent basis. So, irrespective of the social media platforms you’re active on, make sure that you’re posting new content as much as possible.
Not posting regularly can limit your business account’s reach and stall its growth on social media.
Keep branding elements consistent across all platforms
If your Instagram page looks drastically different from your Facebook page, your target audience is bound to get confused. That’s why it’s vital to use similar branding elements across all social media platforms.
The branding elements you should focus on keeping consistent include your business’s logo, its imagery, and its voice, i.e., the tone of communicating with your audience.
Encourage users to engage with you on social media and interact with them: Through the use of call-to-action (CTA) messages, you can encourage your followers on social media to engage with your posts. You should also spare time to respond to your followers’ comments.
There are quite some things to consider in your endeavor to increase your buisness image. However, focusing on the three above is more than sufficient to get started: Meet people and tell the about your business; make an effort to be professional, especially in your online presence; and lastly, make use of social media platforms to your advantage.
Be sure to do a lot of trials-and-errors so that you can form the best practices for your company.
5 Ways Virtual Headquarters Pandemic-Proof Your Business
The coronavirus pandemic battered many businesses to the ground. At its peak, we saw businesses either shutting down or struggling to make ends meet. We had job cuts and salary cuts left, right and center. Businesses across the world, especially small businesses, are still suffering from the economic shock of the coronavirus pandemic. Even now, with things finally opening up, many businesses are skeptical of the times and have gone into planning mode.
Every business now wants to create a contingency plan for when things start to go out of hand. Many businesses which were able to survive the pandemic were the ones that were prepared. The ones that had a contingency plan and a disaster management plan ready to roll out.
Taking a cue from this, all every company wants to plan for right now is this: What to do if and when a pandemic hits again? Is there a way to pandemic proof your business?
One step that most businesses have taken is setting up a virtual headquarters.
What is a Virtual Headquarters?
Virtual headquarters or a virtual office is a physical address of your online business. At this physical address, you can create shared workspaces, meeting rooms, and set up a virtual assistant. You and your employees can continue working from home, but you still have a physical address for your place of work.
But why would you go to all that trouble when everyone is working from home? A number of factors come into play here, the biggest of them being the pandemic. As more and more businesses attempt to pandemic proof their businesses, they are striving to find the right balance between remote working and having a physical office. For a lot of businesses, a model that works better is having a watered-down version of a physical space up and running.
Here are some of the main advantages of opting to have a virtual headquarter for your business in order to keep it as pandemic proof as possible.
1. You get a prestigious office address
First impressions matter. And having a prestigious office address on your business card certainly makes the right impression. This point becomes even more significant if you are a small business that’s trying to make it big. A calling card with a flashy office address sends a positive sign to potential clients — about your seriousness regarding the business and your credibility and professionalism. A prestigious office address is also something your employees will be proud of.
So you get a great address without the long lease and the major utilities and upkeep costs involved. An absolute win-win.
2. Expansion is easy
It is a lot easier to expand or even downsize your business when you have a virtual headquarter. This is because you do not need to think about the physical space aspect of it. Need to hire more people? Go ahead without worrying about where they will sit, if you will need to lease a new floor, or if the office space is enough.
Thinking of moving a department offshore? No need to redo your office space lease to physically downsize. Having a virtual headquarters gives you the flexibility without the constraints.
3. Your employees can keep working remotely
Having a virtual headquarters does not mean a proper office space that employees will eventually return to. You and your employees will continue to work remotely while being associated with that one physical address.
Depending on how big or small your virtual headquarters are, you can make room for monthly in-person team meets. You can even give some employees to have the option to book up a terminal and work from the office once a week. Or you could simply reserve your physical address as a place to forward mail and work calls. The possibilities are endless.
4. Customer service are made easy
When the pandemic hit, too many companies had to suddenly shut shop and move everything online. While the transition came with its own hurdles, one of the bigger issues was customer service.
Shutting shop completely may cause some technical issues with providing customer service. Having a virtual headquarters means that you can now use the available virtual services, such as 24/7 customer service – which can be a critical success factor in winning customers during the pandemic.
5. Better work-life balance
Just knowing there is a demarcation between your work life and your personal life helps a lot in trying to strike a balance. As great as working from home is, many find it very hard to disconnect completely from work. This happens when the place you work from and the place where you relax overlap.
A lot of employees are prone to giving out their personal details more easily while working from home. This may be to receive official correspondence via postal mail or receive calls on their personal mobile number. While this may seem like part and parcel of remote working, it makes disconnecting difficult. Things seem tougher when you proceed to go on leave or a holiday but are constantly being bombarded with work calls, emails and postal mails.
When you have a physical headquarters, employees are able to make use of the virtual receptionist to handle calls and also have an address to forward relevant mail in their absence. This provides a much-needed demarcation between personal and professional life.
A virtual headquarters may not work for a particular business type. On the other hand, it may be the thing another business needs to flourish. It is important to evaluate all the pros and cons before you make a decision for your business.
Ken Abel, Sales Director at Trailstone Insurance Group, Interviewed on Influential Entrepreneurs Podcast Discussing the Core Values Working With Trailstone Insurance.
Distributed work is here to stay — how your business can adapt
“Whispers from His Heart: Experiencing The Love of God”, moving brokenness to healing by personally connecting to God daily
The Moment These 7 Entrepreneurs Turned Their Hobby Into a Business
How to Scale Your Sales Team Quickly
Tips for scaling up your Etsy business
Managing people4 days ago
12 examples of team-building activities for small businesses
Growing a Business4 days ago
In Business, Image Matters. How to Improve Yours?
Finance & Accounting4 days ago
What Are Typical Small-Business Loan Terms?
News3 days ago
Interview with Morgan Lloyd Insurance Agent with Trailstone Insurance Group About Protecting Homeowners from Natural Disasters
Leadership7 days ago
How to Help an Employee Who Struggles with Time Management
Growing a Business5 days ago
5 Ways Virtual Headquarters Pandemic-Proof Your Business
Managing people4 days ago
Don’t Just Pay Interns, Help Them Build Networks
Leadership4 days ago
How to Respond When an Employee Quits