Customer & Supplier Impacts on your Supply Chain

When creating your supply chain, it’s vital to remember that every activity you’re doing leads back to one road: the customer. The customer is arguably the most important member of the supply chain because without customers, nobody would be in business. Building your supply chain to satisfy your customers will allow you to source proper materials that will make your supply chain more resilient. 

How is this done? When your business endeavors to get a clear understanding of what your customers value about your business and how you differentiate yourself, you can build upon your strengths. If you’re known for building a more reliable product, then customers won’t mind if you need to source higher quality parts/materials and take a little longer to do so. The story will be different if you’re known for efficiency and cost savings or customer satisfaction. Seeking out what your customers value from you has proven time and again to be a worthwhile investment.

By knowing what the customer values with your business, you can identify what threatens your ability to deliver your products and which risk mitigation measures will be most effective for your business. You can also utilize this information in regards to your suppliers and provide them with feedback on improving their supply chain as well. They can source better materials or direct you to another supplier in case there is a disruption. Creating these working relationships allows you to continue providing quality products to your customers in a timely manner while keeping true to your values.

It’s important to pay attention to the supplier’s impact on your supply chain, particularly the distance and shipping methods used when determining sourcing strategies. There was a long-held belief that parts/materials would simply be delivered no matter what, but it will be a long time until this will be the case. Understanding the distance and shipping methods allows you to develop contingency plans in the event there is ever a disruption.

Finally, we must understand the supplier’s costs associated with creating products. While nobody wishes to pay more, we must understand when it’s beyond the supplier’s control and assess whether their value as a partner outweighs these costs. It’s important to remember why your company picked your suppliers, oftentimes it was for reasons beyond cost. If we’re too focused on costs we may run out of suppliers and if we can’t have suppliers, then we won’t have a supply chain.

Here at Zip Xpress, we understand the patterns that can affect your supply chain. That’s why we strive to help our shipping partners and their customers ensure success with every delivery by scheduling pickup and dropoff times through a phone call. Our drivers also understand the importance of every shipment, providing friendly and helpful service while your shipment is in our care. If you’re looking to understand more about developing a strategic supply chain, we have a multitude of custom carrier solutions that can help every shipment of yours arrive on time and undamaged. To see for yourself, start today with Zip Xpress!