Successfully managing your supply chain should be a priority as a start-up. Thousands of new start-ups are established each year, eager for success and good fortune. Sadly up to 50% of these soon face failure, but why?
Well no matter how much enthusiasm they have in the beginning or how amazing the idea is, it takes far more to succeed. Having an inefficient and badly managed supply chain is common but fatal to businesses. In this post, we will explore what you need to consider if you want to be on the top of the supply chain game.
The devil is in the detail
It is fun to think about your business when you are getting excited about the product itself or projecting sales but success lies in the detail. Understanding the meticulous aspects of bringing a product to market and keeping it there defines success. You need to understand employee ramp up, funding, financials and customs, manufacturing, shipping, delivering and logistics. These are not necessarily alluring topics but understanding them will help to keep your business afloat.
If you are not prepared to study these topics to a high level of comprehension then you will inevitably make unnecessary mistakes. Educate yourself or consider outsourcing the supply chain management so you can focus on areas of your business that bring you bring you more joy.
Plan for the long term
When you first had your business idea, you probably dreamt of the day when you had a supply chain to manage. The process to get your concept through the design and build stage is long and many ideas don’t see it through even that far.
Once you get the point where you are ready to manufacture more than the prototype you will feel accomplished and excited about the launch ahead but the oversight many make is in their rush to see their product flying off the shelves they make devastating mistakes when putting their supply chain in place.
An effective and well managed chain in place impacts not only on the initial manufacturing process but also on long term development. Any successful company knows that it is important to keep working on and developing your product to meet the ever changing needs of your ideal client. If your systems in place cannot handle these transformations competently then you will face the same problems as you did at the beginning again and again and again.
Don’t be afraid of investment
Cash flow is often a problem for start-ups but when you analyse why businesses fail it often comes down to lack of wise investment. There are skilled and experienced supply chain managers available that specialise in start-ups and the cost of hiring one may be an additional outgoing but the cost of not hiring one could be even more.
Making the wrong decisions and badly managing your chain could cost you in a variety of ways, including;
- Sourcing overpriced materials
- The cost of your own time (how much do you value yourself)
- The time it takes to physically manufacture
- Inefficient shipping and distribution systems
- Staff ramp up costs
Having an experienced manager to support this process is truly worth its weight in gold and they will recoup the money you spend on them in the savings they make within the chain.
What can Nexus do for your supply chain?
Failure to manage your supply chain effectively will definitely lead into an overrun on costs and delays in your product launches and re-launches. This will sadly lead to unhappy customers who can destroy a business’s integrity. To ensure that your start-up is able to overcome these challenges, we can work with you and set up effective management systems that will eliminate risk and see your product quickly come onto the market in time and within budget.
Tell us about your project and learn about how we can help you get started today at the home of intelligent engineering. Call us on 01353 653 855 or email info@nexus-ie.co.uk
