If your business is suffering because of oversights and systematic mistakes in the supply chain, what would you do? Marketers tend to make some common mistakes in their supply chain. This should be avoided under all circumstances. You may find it difficult to scrutinize these mistakes but once they are detected, you can be increasingly aware of them. Many organizations cannot take advantage of business opportunities because of this reason.

Common Mistakes in the Supply Chain

The most common mistakes that marketers tend to make in their supply chain are listed as follows:

Misunderstanding cost-to-serve

This is one of the major indicators for determining an organization’s performance. But, most marketers don’t realize this fact. Marketers should try to detect the customers that provide them the most and the least profit. Apart from this, you also need to ponder upon the fact that whether you lose money while supplying certain products to some specific clients. If you are not aware of the above-mentioned aspects, organizations cannot maximize their profits. It is important to assess these factors as in this way business firms will get an idea of the customer accounts and subsequent relationships. Most of the time, these costs are generated within the supply chain but they can also remain hidden in some reports.

Companies need to differentiate between products and customers. According to marketers, the best customers are the Low CTS-High revenue ones. The worst customers are High CTS-High revenue ones. If you do not have a proper idea about cost-to-serve, you can detect the customers who contribute the most and least. A company should focus to transform unprofitable consumers into profitable consumers. This will also help organizations to extract value from the supply chain.

Ineffective sales and operations planning

This is another of the most common mistakes. In the larger scenario, it can be an expensive affair. If you do not put the proper resources and effort into formulating a certain kind of operational insight, it can prove to be futile for your company. Now, the question arises why does this lack of effectiveness occur? It can be for reasons like non-adherence to a particular process, lack of empowerment, and backdated technology.

Every marketer wants to attain benefits from its supply chain. To achieve this objective, organizations should invest in both technological and human resources. If companies do not adopt this practice, they can expect problems like no faith in demand projections, input at late times, improper projections, and missed opportunities.

No idea of freight-cost

If you do not have an idea about freight costs, your organization is very likely to incur losses. Organizations need to understand the freight transport market if they want to pay a regular rate for shipping. In this way, you can connect with the right transport providers. This is indeed a great advantage when an organization is operating in a different destination. If you select the appropriate transport providers, you will get a chance to negotiate with them. We advise you to have a look on DocShipper, a dedicated freight forwarder operating between Asia and Europe/America.

Lack of customer service clarity

Every organization needs to have a good supply chain policy and logistics system. However, a large number of organizations haven’t realized this fact. Many companies fail to integrate customer service with the transportation system.

You should focus to develop a supply chain customer service policy for your firm if there is none. If you fail to do so, customers will not be satisfied with the services of your organization. This will make your company lose its grounds especially if it’s a start-up one. It will not be an exaggeration to say that modern-day businesses are customer-centric in their approach. If customer service clarity is absent in your organization, your customers will not get an idea about your firm’s offerings. It also reflects the ineffective management strategy of your organization. Any bad decision at this phase will hamper your cost-reduction policy.

Not paying heed to the reviews of the distribution network

If you neglect the reviews of your organization’s distribution network, it can have far-reaching consequences. In this case, not only financial issues will occur but also affect the financial environment. More often, in such instances, marketers cannot identify the business opportunities relating to cutting down operational costs, energy efficiency improvement, maximum utilization of assets, and minimizing freight costs. It is better if organizations develop a flexible supply chain. If your organization is facing the above-mentioned issues, try to fix them immediately to attain a significant growth.

Try to avoid the above-mentioned mistakes if you want to accelerate your organization’s growth. You should always remember the fact that an effective supply chain results in increasing revenues for business firms. So, be careful and consider all sides while formulating a supply chain policy for your company.