How Small Retailers Can Take Control Over Their Supply Chain

Opening up a store of your own, whether in person or online (or both!), is one of the biggest challenges in the modern business world. Your product has to be stellar, affordable, and exactly up to customer expectations – and as every business owner knows, those factors take time to get right. 

And when you have supply chain concerns on top of that, the whole process can snowball into one big problem. That’s something we need to stop in its tracks; when the supply chain is letting you down, it’s time to take control. 

Automating your supply line is one thing, but you also need to understand where things are going wrong, being delayed, and falling short of expectations. Remember, the more of an insight you have into the way a supply chain works, the better stocked and serviced your store will be. 

With that in mind, here are the best ways a small retailer like yourself can take control of their own supply chain. 

Work with as Local a Supplier if Possible

The closer your supplier is, the less time it’ll take for your supplies to get to you. Similarly, you may be able to score a regional discount from them. Shipping costs are calculated on a case-by-case basis, even when working with a bulk delivery partner. 

As such, try to work with a local supplier wherever you can. You may need to have more than one supplier for your store, and that’s just fine, but try to keep them nearby. Long-term costs are always better managed when you don’t have to go far to find what’s best for your store and your customers. 

You should also source the nearest wholesaler to ensure you have an easy time stocking up in between supply orders, and it won’t take too long to get what you need in a pinch. There will be days when you’re running low on something, even in the most organised supply chains. Expect this in advance and plan ahead for it. 

Read More: How Rural Areas Rely on Local Shops

Understand How to Talk to a Manufacturer

If you have to work with a manufacturer to get your goods made to the right standard, either according to your own specifications or through the use of custom product development, you’ll need to learn how to talk to them. 

This is usually done via purchase orders that contain all the necessary details. Learning to put one of these together is key to securing supply chain control. You can make use of a template here, which will help to cut down the time required to submit a new order in each period. 

Of course, these documents should still be subject to any minute checks. Making a mistake on a purchase order and only realizing after the fact can be a big waste of time and money. That won’t help you to retain the kind of control you’re looking for here. 

Similarly, make sure you’re aware of your specific manufacturer’s needs before you template your purchase order. Each manufacturing solution will have its own system of working with clients. Abide by these as often as you can, and don’t be afraid to communicate when you’re unsure or need clarification. 

Read More: Benefits of Choosing a Sustainable Manufacturer

Be Strict with Your Stockroom

How well do you maintain the stockroom within your business? If you don’t have a strict hand on the reins, there’s every chance you’re falling prey to lost stock, misorganised stock, and even theft. 

You need to know what goes in and out of your stockroom, right down to the fine details. These will include when each order arrives and is sorted away, and who completed the task. If you’re your only employee, this system will be a lot easier to track. For those with a team to lead, ensure each employee knows how essential this reporting system is. 

You should also make note of when stock rotations need to occur, especially if you’re in the food and drink or hospitality industry. Making use of older stock will lower the amount of waste you produce each month, and it’ll ensure you net a larger profit over time. After all, you’re not spending money just to throw it away again. 

Operate a Local Delivery Service

This is a good choice for anyone who has a lot of local customers. Not only does this make shopping with your store a lot more convenient – as you can bring the products straight to their door – but it provides a hands-on sense of control over your logistics. 

They form an integral part of your overall supply chain, but they can be the most unreliable part of it too! Impress your customers by allocating time for delivery slots, perhaps once or twice a week, and allow your regulars access to them. 

You can also save a lot of money over the course of 12 months by partially running deliveries yourself. Make sure you’re operating in a vehicle that is roomy, to maximise fuel economy, and represents your brand, in order to provide ongoing free marketing. 

You can ensure this by getting your name and logo printed and/or wrapped onto the vehicle. You can also look into private number plates and create one that’s both road-legal and representative of your company name or message too. 

Understand What Your Customers Want Most

Your supply chain should allow you to cater to the customers you’re serving on a daily basis. To enable this, you’re going to need to understand what your customers want most. Indeed, some of your products will be more popular than others. 

As such, you’ll need to buy these in larger quantities and/or more often, while other products on your shelves could sit there for a while to come. 

When you have a small customer base, however, you won’t have as much detail to work with as you’d really prefer. That’s where a forecasting model comes in handy; predicting what your customers will want over the next month or so will keep you on top of supply and demand. 

You can use the data you’ve been able to gather personally, according to recent and ‘all time’ sales within your own business. You can also focus on competitor’s data, to get a bigger picture of the typical shopping habits within your niche and industry. 

Drive Sales From Time to Time

Now, what can you do with the stock that’s not selling as fast? You can drive sales increases from time to time with a bit of clever marketing. A buy one get one free offer, for example, on a selected range of items within your store. 

Not only will this allow you to net some profit off of stock you’re sure will end up going to waste, but it’ll clear the shelves in time for new products to hit them. No shop can survive without changing its offerings over time. 

This will give you much more control over your supply chain’s future. If you can’t shift old stock and don’t want to lose out entirely, it will sit there still not making money. Changing your product lineup has a much better chance of enticing new and repeat customers, but you’ll only have space for that by physically making room first. 

Be Proactive in Customer Service

Finally, the end point of your supply chain is where your customer service lives. You need to address this with just as much enthusiasm as every other link that comes before it. 

You need to stay on top of customer communications, above all, so you can be aware of what your customers are thinking. Feedback is essential in the small business world, even when you’re receiving negative and neutral comments and complaints. 

Historical customer service data will also let you know the average amount of returns, exchanges, and replacements that will be required. It’s always best to buy excess products in case items need to be sent out again to the same customers. 

And to round this off, be sure you know what to do with returned stock. Don’t let it clutter your stock room or simply end up in landfill. 

Supply Chain Issues Shouldn’t Hold You Back

Running a retail company is difficult. There’s a lot of customer service needs to stay on top of, and paying rent for a retail unit month after month only seems to be getting more expensive.

So when your supply chain has weak links, the best thing to do is reassess how it’s all working. To start with, keep the supply as close to you as possible, make sure you’re aware of what a manufacturer really needs from you, and then focus on your internal practices. 

Ensure your stock room is well organised, for one, and go above and beyond for the customers who reach out for a resolution. Mixing all of these ingredients into the pot will grease the wheels of your operation, and you won’t have to worry about what’s going on behind the scenes.