How to Improve Your Pricing and Supply Chain Management

For nearly two years, the global supply chain crisis has wreaked havoc on businesses across the world. It wasn’t anything anyone expected, and many businesses had to adapt in order to survive. Even today, we continue to feel the impacts of this ongoing issue. Like many of my clients, you’ve likely found a short-term solution for your supply chain issues. Instead of relying on these short-term solutions moving forward, I encourage you to take this time to reconsider your pricing and supply chain management for the long-term.

Here are my top suggestions for improving your purchasing and supply chain management:

 Communicate effectively with your suppliers

Maintaining a good relationship with your suppliers by using effective communication can greatly improve your supply chain. I recommend keeping your suppliers informed about what they can expect from you and what your plans are for the future. Likewise, your suppliers can keep you informed of any anticipated delays or issues that could cause possible disruption to your operations. Consider scheduling regular meetings, ideally well in advance of your “busy season”, where you can discuss anticipated needs and resolve any issues that may have been previously experienced.

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Reduce purchasing costs

Another reason why it’s important to maintain a good relationship with your suppliers is because it can affect your purchasing costs. Suppliers with loyal customers will feel more inclined to provide better prices than customers who use them on an ad hoc basis. Additionally, suppliers who know what they can expect in regard to future orders may also be more willing to provide better pricing, which is why frequent communication is paramount.

 Optimize your supply chain

Even the best suppliers sometimes experience issues. For this reason, I highly recommend sourcing multiple suppliers and keeping an updated list. This proactive approach ensures you can fulfill your orders should something go awry with your preferred supplier. You may even want to consider having a combination of local and global suppliers for ultimate peace of mind, bearing in mind the cost differences.

 Another way to optimize your supply chain is by leveraging inventory management software that can help track inventory levels as they move through each stage. You will then be able to analyze the data on a monthly basis for a more accurate picture of your supply chain needs.

 Despite the ongoing supply chain crisis, now is the time to reconsider how you manage your supply chain. Luckily, you don’t have to do it alone. Contact TAB York Region today to take advantage of one-on-one business coaching sessions and peer-advisory boards to help optimize how you conduct your business.