Wondering if your small-to-medium-sized business (SMB) can compete against larger companies? Yes, you absolutely can compete. Here are five steps to consider in your strategy:
- Take a look at the benefits you gain when you outsource logistics. Outsourcing lets you convert fixed costs to variable costs, releasing capital for investment in the business. And by outsourcing R&D, production, and transportation, you offset costs and improve efficiencies. You can also avoid hiring additional operation-specific personnel and reduce training needs. Your managers will gain time to work on growing the business. And you’ll have access to state-of-the-art tools without investing in those systems.
- Think about how you can optimize your supply chain network. Optimization helps by maintaining the right amount of inventory at each stage of the supply chain to avoid overstocking or stockouts, reduce carrying costs, and ensure products are available when needed. An optimized supply chain often includes contingency plans and risk management strategies to better manage natural disasters, geopolitical events, or supply chain interruptions. Lastly, supply chain optimization lets you determine the best locations for warehouses, distribution centers, and production facilities so products can be efficiently sourced, produced, and delivered, reducing transportation costs and lead times. An optimized supply chain is better equipped to handle changes in demand, supply, and market conditions.
- Think about how you can improve warehouse processes. Improving productivity is the name of the game for SMB warehouses, where employees and businesses thrive by adopting mobile printers, smartphones, or tablets to modernize their operations. SMB warehouses can also use mobile workstations to bring the technology to a more central and convenient location, boosting productivity. Also, cloud-based organizational systems lead to more accurate inventory management–an essential part of customer service. All of these solutions can make a warehouse more agile and able to better respond to unforeseen challenges. While considering up-front costs, you’ll want to factor in time savings, productivity gains, and warranties. SMB warehouses can take advantage of free trials or demo periods, providing a worry-free way to test mobile solutions.
- Keep your customers close by providing stellar customer service. When you excel at customer service, you keep ‘em coming back. We at Nexterus take a page from the Ritz Carlton’s pledge for customers, where guests’ genuine care and comfort are their highest mission.
- Leverage your local status with community involvement. One of your greatest strengths as an SMB is that you are “local.” Consider donating to local charities or getting involved in fundraisers to build a strong impression for prospective customers and employees. You can actively engage your employees, asking them to log hours of service and support a local organization with missions, visions, and goals near and dear to their hearts. Read more about Nexterus’ annual initiative “Terrence Cares.”
SMBs don’t just compete with other small businesses. There are larger companies out there that you compete directly against. Don’t let them overshadow your business. Follow the simple steps above to gain a competitive advantage. Nexterus specializes in helping small and medium-sized businesses align their supply chain processes, remove inefficiencies, and increase profits so your SMB gains a competitive edge. Contact Nexterus today.