Supply chain management considerations for smaller companies
|kristina.tikhonova 20/07/2015 10:41:33
In the distributive trades, there is little denying the importance of the effective management of the supply chain. While, for major corporations, there are clear benefits of investing in supply chain management software to increase efficiency and boost profits given what may be billions of pounds of annual spending, smaller or medium sized firms that are supplying goods have slightly different considerations. Nonetheless, they too are likely to enjoy many benefits as a result of using the K8 solution of Kerridge Commercial Systems (http://www.kerridgecs.com).
Small and medium sized manufacturers may question their participation in the supply chain, depending on such factors as their size and network capabilities, as well as the identity, policies and procedures of the customer at the top of the chain. It is smaller firms, for example, that will be very much dependent on winning long-term contracts to relieve pressure and make production and planning easier to schedule. However, such supply chain contracts may also include heavy fines, to be imposed in the event of a breach on the part of the smaller company. Downsides like these may force the small supplier to look internally for means of cutting costs.
It can also be rather costly for smaller companies to represent larger customers given the regulations and processes – such as ISO 9000/9001 – that the latter may demand of the former. The small supplier may also lack the staff and systems to deal with the huge amount of paperwork and detailed documentation that may arise from larger firms, and that’s before one considers the question of serving the customer profitably. In an age of heightened demand and expectations, smaller suppliers will need to be able to offer low prices while still accounting for all costs, including any hidden and unforeseen ones.
One step that a small or medium sized supplier can make in order to streamline the whole process is to invest in supply chain management solutions such as those that are incorporated in the K8 business software from Kerridge Commercial Systems. As a complete software solution for the distributive trades, the K8 software integrates such related modules and applications as stock management, warehouse management, sales order processing and purchase order control. It is a solution that is fully scalable to any business, being as suitable for a small firm as it is for a multi-national corporation.
K8 is financial management software that allows clients to make the most of the supply chain irrespective of their size and circumstances, adapting to constant changes in the fast-moving distributive trades. By introducing tighter supply and stock management, it helps to reduce business risk to small or medium-sized firms, increasing their profits and leaving them with more funds with which to pursue further business opportunities.
More information on the advantages of the K8 warehouse management software can be found at the online home of Kerridge Commercial Systems at http://www.kerridgecs.com.