In particular, working in a warehouse environment can prove challenging, involving many demanding and often painstaking jobs. In this article, we assess some primary ways to encourage good teamwork which can help make stock control and work life easier for everyone.
Implement Lean Manufacturing For Better Stock Control
Lean manufacturing can help to improve teamwork in the workplace because of its emphasis on producing more with less. This means less time wastage, better stock control and a more efficient use of resources, as well as less overheads to mass produce. Lean manufacturing can encourage better teamwork during the production process by reducing the work load and fostering a more efficient, more productive work place.
Lean manufacturing also streamlines the manufacturing tasks involved, facilitating a smoother production process by improving organisational structure. This will help to boost individual morale and therefore team morale, making for a more pleasant working environment.
Communication
The productivity and efficiency of your business depends on your employees having good communications skills, especially where jobs require working together. Aside from this, keeping an open line of communication between staff members is a good way to build interpersonal relationships which can act to boost overall morale. Keeping up morale is particularly important where staff are required to carry out difficult or strenuous warehouse operations as a team.
Lee Fisher, an HR manager at Blinds Direct, argues that role switching is a great way to give staff members an appreciation for roles other than their own. With this method, each team member switches roles with a colleague, helping to build interpersonal relationships with others and fostering collaboration. This sets a great precedent for later work, and is a great way to break the ice between new employees.
Good communication is also key to ensuring good stock control, especially in larger operations where multiple departments need to work together. Without an open line of communication between everyone involved, mistakes can be made which may have ongoing consequences.
Leadership
A good leader will boost morale, encourage cohesion and facilitate collaboration between staff members by leading by example. Ensure your team is being managed or supervised by someone with excellent team-building skills, to keep the group unified. A good leader is also a reliable one, so ensuring your staff have someone dependable to lean on is a great way to encourage unification and cooperation among staff.
According to career advisor and hiring manager of ResumeCompanion.com, Lauren McAdams, rotating staff in different leadership roles is an essential method for improving teamwork. Giving individual staff members different leadership roles in a variety of projects demonstrates your trust in them, and this boosts morale. Moreover, if staff members feel appreciated they are more likely to work harder and encourage others to do the same.
Lastly, a successful leader can help ensure accuracy and efficiency of stock control procedures, acting as an overseer. This way, staff have a singular, reliable individual to liaise with regarding any inventory issues, preventing mix ups and confusion that can occur without clear supervision.
We operate in four currencies and needed a program which could work back and forth for us. The other wonderful feature we couldn’t live without is the ability to handle our landed costs in one step.
Setting Goals
Setting both short and long-term goals for the group is an excellent way to bring staff together, by providing an incentive to cooperate and work as a team. It is also a good idea to be open to reevaluating these goals according to staff needs.
Acknowledge Staff Strengths
Pay attention to the strengths, special talents or skills of each individual team member. Acknowledge these strengths and come up with ways in which your staff can put their special knowledge to good use. Doing so will demonstrate that you respect your staff as individuals, and this will give them an incentive to work with others and to lead by example.
We hear about numerous store closures and buyouts, and there seems to be a general loss of confidence in physical retail.
But here at Vend? Our belief in brick and mortar stores is stronger than ever. Yes, there have been several closures and not-so-great news about physical retail, but, don’t let all the negative news bring you down. Instead, take a look at these 5 retailers that are not only surviving in these turbulent times but are actually growing and thriving.
T.J. Maxx becomes more valuable, plans to open hundreds of stores this year
Off-price retailer T.J. Maxx (TJX), is growing and thriving. According to the Wall Street Journal, “TJX gets almost all its sales from its roughly 3,800 physical locations and plans to open 250 stores this year. Its revenue and profits are climbing, and it envisions expanding to 5,600 stores worldwide over time.”
The sales of TJX have been growing for 33 straight quarters now, and the company’s annual sales are higher than Nordstrom and J.C. Penney combined.
How does TJX do it? Two things: it moves fast, and it empowers its buyers to make decisions themselves. The WSJ reports that TJX has over 1,000 buyers, each controlling millions of dollars and are given the authority to “cut deals on the spot.” That’s in contrast with other department stores, “which can take weeks to review and approve orders.”
Once the deals are done, the company ensures that new products hit the sales floor as soon as possible. There’s even an internal mantra at TJX called “Door to the Floor in 24.”
The result? TJX always has a fresh assortment of merchandise that keeps buyers on a constant “treasure hunt.” Shoppers know that great items go quickly at T.J. Maxx, so they tend to buy on the spot.
This treasure hunt experience also keeps people coming back. There’s that feeling excitement in knowing that you can score a great deal whenever you walk into a T.J. Maxx store.
Takeaway
Speed matters in retail. If you fail to adapt or keep up with your customers, you’ll get left behind by your competitors. Evaluate your business and identify things that are slowing you down. Find ways to streamline your operations so you can test things and roll out initiatives more quickly.
You should also consider empowering your employees to trust their judgment and make decisions. Invest in proper staff training and then give workers room to flourish and grow.
Apple experiences strong double-digit growth in store visits and revenue
One of the world’s most valuable companies bet big on brick and mortar stores, and it paid off incredibly well. According to Quartz not only did the Apple experience “strong double-digit growth in visitors and revenue,” but its stores continue to have the highest sales per square foot in the retail industry. Additionally, a significant chunk of its revenue — two-thirds — continues to come from retail.
Aside from having great products and a well-known brand, part of what makes Apple stores so successful is the experience that people get when they’re in these shops. Apple was one of the first to implement mobile checkout, and the company’s employees were trained to build relationships and add value to customers’ lives, rather than simply selling to them.
Apple continues to innovate. The company recently redesigned its stores to include board rooms and even a town square (for bigger shops) where people can hang out. It also launched “Today at Apple” an educational initiative where people can learn about various topics, including photos, videos, design, coding, and more.
Takeaway
Evaluate your in-store experience. Do you encourage people to stay and engage with employees or is your shop all about getting people to spend money? Are you running any initiatives that add value to your customers’ lives? If not, consider holding events or classes and see how people react.
TheSuperCool expands to brick and mortar retail and widens its merchandise offerings
So far we’ve talked about the success stories of big companies like Apple and TJX. And while there are plenty of great lessons to be learned from the big guys, SMBs also have a lot of valuable pointers to impart.
That’s why for our next success story, we’re putting the spotlight on TheSuperCool, a Melbourne-based emporium that sells unique, everyday items. TheSuperCool started off as a mobile gift emporium. According to its owners, David “Noonie” Nunez and Kate Vandermeer, they would drive around Australia and would use social media to alert their fans to their presence.
How did the company do it? For starters, TheSuperCool’s assortments are thoughtfully curated and are sourced from small business makers that offer organic, fairtrade, and handmade products. The company also collaborates with exclusive products. Because of this, the store’s items are unique, high quality, and are oozing with personality.
TheSuperCool also has a fantastic loyalty program called SuperCool Amigos. The program has perks such as exclusive shopping experiences, personalized styling advice, vouchers, and more.
And to keep in touch with customers, TheSuperCool collects email addresses using the Vend‑Collect Rewards integration. This has helped Noonie and Kate grow their email list by 750% in the three years.
Takeaway
A good way to get people to buy from your shop is to offer items that they can’t find online or in other retail stores. Strive to improve your assortments by incorporating more unique items. And don’t just display or showcase your products; thoughtfully curate them. Get to know your customers and show off your merchandise in such a way that they appeal specifically to them.
Finally, don’t underestimate the power of loyalty programs and emails. Set up a rewards initiative and make sure your top customers know how much you value them. You should also make it a point to communicate regularly with your customers. Collect their email addresses and stay on their radar by sending high-value messages.
Kuwaii doubled its business size in one year and continues to grow
Kuwaii is the opposite of fast fashion. It’s a high-end apparel retailer that produces beautiful, timeless clothing and footwear made locally and made to last.
The first Kuwaii location opened 2012 in Brunswick, and the business doubled its size soon after that. Kuwaii opened a second store in 2014, and it doubled its business yet again.
Kristy Barber, the owner and designer at Kuwaii, shares that their community is one of the reasons for the success of her business. “Our studio is based in Brunswick, and the community there is amazing and so supportive of our philosophy. In terms of our creative community, we’re pretty happy to be part of a flourishing one here in Melbourne.”
Kuwaii carries items from hard-to-find artists and creators. And according to Kristy, they “support other brands by hosting sales and events for them, collaborating with artists and makers at least a couple of times a year.”
Additionally, the company creates fashion films, and this enables Kuwaii to tell interesting stories behind its products and company, while collaborating with community members at the same time.
One of the most admirable things about Kristy (and what we believe greatly contributes to the success of Kuwaii) is her strong dedication to her values.
“My business is closely tied into my personal belief system, and Kuwaii is a natural extension of that,” she says. “I personally believe that we can support local industries and don’t have to immediately outsource all of our manufacture overseas. Although we are driven by profit (like any business) money is considered amongst many other factors when we make decisions. And it’s not always the first consideration!”
“Supporting the local community and keeping trades alive here is so important to me. Environmental issues and the impact fashion makes is a big concern. The human cost of fashion can be very, very high, and I don’t want to negatively contribute to that industry. I want to offer customers a beautiful alternative to the world of fast fashion and mass produced items.”
Takeaway
Promoting your values and staying true to your beliefs will attract loyal customers who believe in your philosophy. So stay true to your beliefs and support others who have the same cause. This will help you build a strong, unique brand and you’ll gain a loyal following along the way.
Books@One becomes a “destination bookshop” beloved by locals and travelers alike
You’d think that with the presence of ebooks and Amazon, anyone would be crazy to venture into physical book sales. But, as Books@One proves, running a brick and mortar bookstore can actually be very rewarding.
What’s the secret to the company’s success? Two words: customer experience.
“Here, we don’t just sell you a book. We’re a place to visit and become immersed in, a place where you can participate in community events, find out what’s going on in the area and the world, or just relax and enjoy a coffee and a chat,” says owners Brid Conroy and Neil Paul.
“We’re creating an atmosphere where people engage with books in a communal way again,” they added.
On a more practical level, Brid and Neil make it a point to stay on top their inventory. “We sell both secondhand and new titles, as well as notebooks, cards, t-shirts, and so on, so it’s really important to keep complete track of stock,” they said.
“Running a bookshop requires a fine balance of ensuring we’ve enough stock to meet demand and not buying in (cash flow is crucial) or holding on to too much stock (space is at a premium in our cozy and quirky shop!).”
Books@One achieves that balance with the help of Vend. According to Brid and Neil, they use Vend’s retail analytics software and reports to get a real-time view of their inventory, so they always know what they have at any given time.
While you’re at it, make sure you’re running a tight ship with stock control. Arm yourself with a system that gives you a real-time view of your inventory, and use tools that make it easy to purchase, add, and edit products.
In closing
The reports of physical retail’s death are highly exaggerated. Consumers will continue to flock to brick and mortar stores, but to get them to do that, you need to give them a compelling reason to do so. That reason could be sense of community, a cause that they believe in, unique and amazing products, or all of the above.
Find what works for your store. Determine what makes you unique, and then make sure that your story comes to life in your location(s).
Short of asking staff to do more overtime or take shorter breaks, how do owners and managers coax more revenue-raising activities out of every employee and every subcontractor on every shift? And how do they become more effective at making decisions that will boost business efficiency every week?
There are no miracle solutions here. But with careful planning, it’s possible to boost the daily and weekly billable hours of any business. Here are nine suggestions:
Plan your day carefully and avoid interruptions
It’s easier said than done, but answering non-urgent phone calls, constantly monitoring email and surfing the internet are terrific ways to burn up time that could be spent more productively. One method is to designate periods of the day to admin or non-urgent issues – perhaps the first and last 30 minutes of the day. There are a number of good “to-do” apps for desktops and mobiles, such as Evernote and Trello, but even using a basic Google Calendar can be a valuable way to control your time.
Have faster, more effective staff communications
Andrew Griffiths, author of The Big Book of Small Business, says a company only runs efficiently and effectively when there is clear communication with staff. “From my experience, there are two main types of managers: those who don’t communicate at all, and those that bombard staff with memos, meetings and hundreds of other forms of communication. Somewhere in the middle is clearly the best approach.” The number and frequency of face-to-face meetings will depend on the nature of the business, but it’s important to not just rely on communication via text or email. Managers need to schedule regular one-on-one and group meetings to ensure issues don’t escalate and allow team members to discuss matters themselves. Google Calendar or other cloud-based software, such as GeoOp, can help schedule jobs and meetings.
Employ someone to do specialist work
Owners of small businesses, in particular, need to master many disciplines. There’s not only the technical side of the company – what the business does – but staff management, administration, accounting and legal. It is rare to find someone who wouldn’t benefit from handing one or two of these tasks to others. Griffiths, for instance, admits that he loathes doing book work, so he outsources his admin tasks (along with clear instructions) to people who do it better and faster. “I think more small business owners should give away the day-to-day tasks that drive them crazy and instead spend their time making money and doing what they love,” he says. He suggests using a virtual assistant to save time and money in the long run. Regardless, you can should always use time-saving technology …
Use the right technology
Mobile workforce management software, such as GeoOp, has made it much easier for managers to monitor the time workers spend on the job. It’s also allowed them to know how long it takes workers to get to the next job or back to the office. Built-in GPS allows managers to see where employees are at all times, and what routes they take to get there. Employees are not likely to be concerned that this information is being monitored as long as the results are used to improve overall business productivity and efficiency. Other cloud-based technology is available to help save time on accounting work (Xero or QuickBooks, for example), sending documents (Dropbox) or getting around (Navman).
Sack your least profitable customers
It may sound crazy to drop customers to increase revenue, but not if those clients are stopping you from doing work that could be more profitable. “Some customers aren’t worth having,” Griffiths says. “If they cost you more in energy, time and satisfaction than they bring in, say goodbye – in the nicest possible way, of course.”
Be flexible with staff hours
The concept of working “9 to 5” went out with the Dolly Parton movie of the same name. This is mainly because day-time hours don’t tend to suit customers, who prefer professional services to be available when they’re at home, not in the office. Many modern mobile businesses allow staff to work flexible shifts, which often suits employees and customers, and means jobs can be booked over extended periods of the day.
Ask your employees for ideas
Often the best ideas to make a business more efficient come from those on the front line – the staff. It could be a work practice that takes longer than it should, or a supplier that consistently delivers goods to the wrong place. It’s always worth tapping into the knowledge of those people who know what you do best. You might even come up with a prize for the best staff idea …
Incentives
Getting staff to work harder is not always about offering them more money. In fact, some experts believe that money stops being a motivating factor as soon as it hits an employee’s wallet. But a recent study by Genesis Associates in the UK found that 85 per cent of workers said they felt more motivated to do their best when an incentive is offered. The number one motivator? Money (40 per cent). Other popular incentives were free holidays and extra time off work.
Be prepared
One of the things often overlooked in business is maintaining a current and agreed contingency plan if things go wrong. What happens in a power blackout? What do you do when a service technician has an accident? A lot of time and energy can be wasted trying to deal with a serious (or non-serious) business issue, or trying to find the one person who can make a decision, when a considered plan might allow a speedy resolution.
Distributors entire business revolves around inventory. Due to the nature of the distribution model where distributors profit by selling inventory to their customers, failing to manage inventory well can be a major liability for distributors. From tasks including inventory receiving, replenishment, inventory stocking, compliance labelling, processing customer service requests, inventory tracking, reporting, shipping and more – there is a need for these inventory management tasks to be systemized to create efficiency, in turn decreasing your costs. Let’s discuss some of the key ways to make your inventory management practices the best asset in your business.
Engage with your people
While automated systems for inventory management are a key component, you still need skilled staff in your distribution business to help identify opportunities, threats, weakness and advantages. Keep your staff and colleagues engaged to continuously improve systems and collaborate to pinpoint problems and provide solutions.
Create sound systems and processes as a distributor
Develop quality inventory management processes to make them mistake-proof, preventing errors before they happen. Adopt a good inventory management system that allows distribution efforts to be automated making human error less common.
Create efficiency when ordering inventory needs
Reduce lead times by establishing a continuous flow of materials and equipment, such that products are pulled through the correct supply chain at the right place, at the right time and in the right quantity. This can be done with the aid of a sound inventory system that pulls data from previous records to create accurate forecasting measures benefiting your distribution practices.
Standardize processes where necessary
Get organized by documenting best practices and ensuring they are followed carefully. This creates efficiency and helps with training new personnel, as well as creating checks and balances in process, minimizing room for error. This can be hugely beneficial as errors in the distribution business can be costly.
Implement, review and revise
It is good business practice to review processes once implemented and improve continuously. This should be done periodically; no matter how good a process appears to be, there is always room to improve it. This is especially the case when introducing new technology.
Be Aggressively Realistic about Inventory Strategy
Although best practice inventory management will differ between businesses and industries, there are some reliable generalizations that hold true for all but the strongest outliers. One such truth is that all inventory has a cost. Aside from the cost of procurement, inventory also involves tying up otherwise productive capital and ‘inventory carrying costs’ such as storage, shrinkage and insurance. Another ‘fundamental truth’ is that inventory shrinks; for all except a handful of industries, inventory in storage will go missing, be damaged or deprecate over time. Understanding these ‘fundamental truths’ – in essence, being realistic about inventory – is a crucial part of any inventory strategy. While successful businesses need optimism, they also require a careful, critical perspective.
Take a Risk-Based Approach
Inventory is both a source of and a response to risk. Inventory can create financial risks, and other inventory management strategies (such as just in time inventory) can introduce operational risk. A good inventory management strategy will involve making realistic risk-based judgments. A risk-based strategy will guide inventory decision making by asking questions such as:
How crucial is a particular supplier to your business’ overall supply chain?
How often will supply chain failure occur, and how much harm will a failure cause?
What will it cost the business to mitigate the risk?
Hold Enough Inventory, But Not Too Much
Although inventory holding costs can put unacceptable financial strain on a growing business, running the business with a near empty tank can be equally as dangerous. Inventory management is all about optimization. A successful inventory strategy will involve constantly adjusting inventory to stay in the ‘Goldilocks zone’ – holding sufficient inventory to prevent stockouts, while avoiding unnecessary inventory holding costs.
Embrace the Power of Data
A successful inventory management strategy will usually involve analysing historic inventory performance to identify trends. Industry leading businesses gain an advantage by leveraging extensive caches of inventory data to predict customer demand with ever increasing accuracy.
Implement Perpetual, Real-Time Inventory
While an extensive analysis of historical inventory is one thing, being able to see inventory performance in real-time is another. Small businesses have traditionally thought about inventory as a periodic chore – with a stocktake as a task to be done at the end of each month, quarter or year. For most businesses, the superior approach is to keep track of stock on a constant, rolling basis. Every time inventory is sold, procured, produced or destroyed, the inventory record should be updated. Having an always-accurate picture of inventory prevents stockouts and the build up of excess inventory. Crucially, it means that your business will never needlessly miss a sale.
Implement a Best In Class, SaaS Inventory Platform
There is a multitude of inventory management options available, but Software-as-a-Service (SaaS) offerings are probably best for most small to medium sized businesses. Consider a platform that is easy to integrate with other business applications you use, such as accounting or point of sale software. SaaS applications, which are hosted in the cloud, reduce IT costs while making it possible to manage or supervise your inventory from practically anywhere on the globe.
Consider Unorthodox Approaches
Once you’ve got the basics of good inventory housekeeping firmly embedded in your business, consider alternative ways of doing things. This is where your inventory management strategy departs from the ‘low hanging’ basics. For example, some businesses have relatively secure supply chains and need to compete strongly in a low margin industry; holding significant amounts of safety stock might not suit those business’ needs, and a ‘just in time’ with dramatically reduced stock levels might work best. While the strategies above are useful starting points, the optimal inventory strategy will be bespoke and take into account the specific dynamics of the business.
Without meticulous attention to cost information, a business would put itself in a very volatile position. It is imperative for a business to track costs carefully, so profit can be calculated against it in each period. This lets a business know how they are doing. In addition, accurate cost data allows a business to sculpt well-informed foresight to make future decisions.
Costing your goods
For example, if you are running an international business importing goods from Asia, you will undoubtedly have to work with a shipping company. Currently, uncertainty around freight costs and port charges can be problematic for importers. Often, freight companies do not send customers the final costs until the invoice is sent the next month. This creates a barrier for the business to maintain accurate costing when its final costs are not only delayed, but often subject to change.
Freight calculations usually involve a substantial amount of math, considering freight class conversions, fuel surcharges, exchange rates, service fees and port charges, alongside copious other factors. Therefore, software can generally make this calculation easier. However, if the software is using static data and automating the pricing math, then the freight cost quote can potentially be inaccurate. Hence, this would leave a business with inaccurate costing.
Costing accurately
The problem lies within the static data. Freight companies, like many others, are vulnerable to constant price changes. Older software used for quoting and shipping cannot often cope with rapid changes in prices such as fuel or port fees. Consequently, this type pricing module becomes quickly outdated. This is where real-time data comes in handy. Cloud-based software that operates with real-time data can work with a freight company alongside a specific shipment. As a result, a more accurate price can be delivered in real-time. This technology can manage the previous uncertainty and keep users’ records accurate.
Now, with accurate cost information, a business can run much more effectively. With accurate costing, sales prices can be set to a competitive margin. Since the base cost is established, a mark-up cost can be added on top of this base and sold at this price. Accurate costs also impact the measurement of gross margin. The cost-of-goods-sold expense is dependent on producing the correct data for product costs. When this calculation is off, it directly impacts the gross margin calculation.
Accurate costing also allows a business to make optimal choices. Often decisions boil down to cost factors. The cost is very influential and the implications could weigh heavily on a business if inaccurate costs are provided. Additionally, accurate costs can impact the valuation of assets. It is important to know proper cost values for assets, as it could change the result of a business’s balance sheet.
Recording all costs correctly and finding appropriate software to manage and mitigate inaccuracies will help keep a business going in the right direction.
The mistake we often see is the assumption that payroll costs are only based on the number of hours worked by your staff x their hourly wage. This is a dangerous trap, as it only provides you with a snapshot of your TRUE payroll costs.
To get the whole picture, other factors must also be considered.
Holiday pay accrual
Your employees might not be taking a holiday this week or even next, but as a business you still have to pay them holiday pay as a percentage of their wages. It might seem incidental but it can quickly add up.
Salary and ‘backroom’ staff
It’s not just your front of house and kitchen staff that you need to pay. Don’t forget about your hard-working, administration staff – their salaries need to be factored into your overall wage costs too. And if the owner is taking a wage from the business, that’s another staff cost that needs to be accounted for.
Non-wage related costs
Every employer has obligations to pay levies on behalf of its staff to ACC or Medicare, as well as contribute to superannuation funds, like Kiwisaver. You may also have additional costs to pay, such as an employee clothing allowance. It can be easy to forget about these costs, as they often aren’t paid weekly, but they can push your wage costs much higher than you think.
One of the best ways to do this is to put a Workplace Health and Safety Management System (WHSMS) in place in your business.
A WHSMS is not a bunch of paper, policies and procedures gathering dust on a shelf. Instead, it’s a unique set of activities, plans and policies – designed and implemented by you and your staff – that are integrated into your day-to-day to help make sure everyone goes home safe.
What every WHSMS has in common
While each WHSMS should be unique, they should include some common key attributes.
An effective WHSMS:
Manages risk appropriately.
Focuses on safe outcomes, not ticking boxes.
Ensures every action taken by the business leads to producing a safer and healthier workplace, either directly or indirectly.
Is continuously adapting and improving.
Involves every employee – everyone needs to have input, know their responsibilities, and know how to manage the risks they encounter.
Is integrated into the way you work.
It all comes down to great leadership
The first and most basic requirement for great WHS is great leadership – you need to have the desire to ensure your employees’ health and safety.
If you believe that WHS is only about ‘covering your backside’ from prosecution when something goes wrong, that’s a problem. You risk reinforcing a negative culture and preventing your business from gaining the true benefit of and opportunities from WHS.
Good WHS doesn’t happen by accident. Luck can’t be relied on to ensure the best outcomes – only deliberate management of WHS can.
These problems are amplified when you’re dealing with overseas businesses whose time zones and operating environments don’t match yours. If you don’t plan it right, you’ll wind up listening to their phone ring out on a Friday afternoon (evening, for them) and waiting until Monday to resolve your issue.
So how can you avoid the headache and get the most out of your international suppliers or manufacturers? Start with our handy list of tips for managing your store’s international supply chain.
1. Start with the right suppliers
It’s easier to maintain good relationships with other businesses if they’re a good fit for your requirements. Before you commit to any foreign supplier or manufacturer, check out their
Lead times and on-time delivery record
Pricing structure and payment terms
QA processes
Policies for damaged or out-of-specification goods
Level of regulation and legal protection
Import and export restrictions, and tax obligations on cross-border trade
Availability of local representatives or staff who speak your language.
When you’re first working with a new supplier, it’s a good idea to start small, either by asking for a sample or placing a small order and seeing how well they can deliver on their promise. Once you’re satisfied, you can negotiate a service-level agreement (SLA) that sets out standard terms and service expectations.
2. Conduct business with cross-cultural courtesy
Standard business practices and “common courtesy” can vary from country to country, so take the time to learn about your suppliers’ economic and cultural environment to avoid causing any unintended offence. Learn how to respectfully address your international contacts using their correct titles and, if you slip up when pronouncing someone’s name, apologise and try again. Likewise, be forgiving of their gaffes.
A bit of knowledge tends to go a long way in face-to-face or phone conversations, when you get constant feedback from the other party. But it’s all too easy to fall into old habits when you’re sending an email across cultural boundaries, so pay particular attention to the tone, word selection, and length of your email. Avoid using jargon or slang that they may not be familiar with, steer clear of jokes that may be poorly received, and if in doubt, err on the side of formality.
3. Stay in touch
Any breakups in your supplier relationships can disrupt your entire supply chain, so it’s important to maintain frequent communication with the key players. This becomes more difficult when you’re operating in different time zones and only have a few overlapping business hours each day.
But putting in the effort to stay in touch can really pay off, even if it’s just to let them know you’re happy with how things are going and pass on your sales forecasts. If you’re in the habit of talking on a regular basis, you’re more likely to be kept in the loop about potential problems or opportunities that might arise. They’ll also appreciate early notice of any upcoming changes within your business that might affect their end.
4. Keep on top of your inventory
Avoid those awful rush orders that are stressful for you and put a strain on your supplier relationships. The better you manage your inventory, the better you’ll know your trading cycle and be able to predict the demand for your products. The latest inventory management systems integrate with point-of-sale and ecommerce platforms to keep track of stock in real time, which makes planning easier and more accurate for both you and your foreign manufacturers and suppliers. (This is equally important if you’re using drop-shipping or third-party logistics (3PL) providers.)
5. Integrate your ordering process
By minimising the number of manual steps, you’ll speed up your ordering process while reducing the chance of introducing errors. While most accounting systems include a basic feature to create purchase orders, good inventory management systems will include time-saving features like
One-click purchase order creation based on your product lines
Automatic alerts or triggered ordering when stock hits a preset level
Automatic updates of inventory levels upon receipt of orders
Conversion of foreign currency amounts into your local currency.
You can take this integration one step further and ask your manufacturers and suppliers if they’d like your orders on a particular schedule. If everyone else orders during the first week of each month, you might be able to skip the queue and get faster service by ordering in the last week.
6. Diversify and avoid dependency
Working with multiple suppliers in different regions leads to more overlapping hours, better resilience to fluctuating exchange rates, and a back-up plan if something goes wrong with one supplier. But this approach is not for everyone, and if your main goal is to minimise the time you spend managing your supply chain, you might prefer to build a solid relationship with a single supplier or manufacturer who can offer you preferential treatment. Whichever path you choose, try to pre-empt any problems by keeping track of each supplier’s financial position, and any events that may affect their ability to deliver.
Neto is a leading ecommerce platform designed to help you sell products across multiple channels. With full inventory management and one-click purchase order creation, it gives you full control of your international supply chain, freeing up the time you’d rather be spending with customers. For more tips on streamlining your supply chain, check out Inventory Management 101: a guide for retailers.
Cloud software allows for fast and effective communication. This is this case for data and in-program communication, but also for communication of the ‘old days’, for example, where you need to get in touch with your sales manager to let them know what to order.
With everything online, there is no need to copy and paste data to hardware (such as memory sticks) to access on a different computer – data is automatically shared between programs and accessible from any internet-capable device.
Accuracy and transparency
With everything to do with manufacturing and sales being stored online, data can be accessed by anyone you authorize and from any device that has internet capability. This allows transparency of processes and information in the company, which is a great precursor to accuracy. There is no latent period of time if information is shared automatically which allows for greater accuracy. For example, if two people are looking at the same sales spreadsheet from different locations and each choose to update it with new data, then the data is kept accurate and current, providing a great platform for sound business decisions.
Cost saving
There is a direct cost saving of cloud-based programs that provide automation because gone is the need for someone to be entering data, manipulating it and sharing it manually. There is also a model of cloud software called Software-as-a-Service (SaaS) where the license for the software is provided to the company on a subscription basis while the software itself is owned and hosted by a third party. The benefits of this are not only financial gains, but there is also no need for an IT department to run it and update it, or even provide training in it as this is often provided by the hosting company. It also allows the company to trial it and see what works for them without having to pay exorbitant amounts in purchasing packages directly.
Improved inventory control and business decision-making
If information around manufacturing and sales is current and automatic, then it is much easier for the company to deduce accurately at any given moment, what is in various stages of production and what is being sold. Having this information accurate and accessible allows the managers to forecast more accurately based on customer demand which then allows for more accurate ordering. Having accuracy around ordering will certainly facilitate the optimization of resources, a definite benefit when it concerns the bottom line.
Accessibility and ease of use in the cloud
Having the ability to access manufacturing and sales data from anywhere on any capable device allows for the freedom of managerial staff to go about their personal or business lives and still be able to maintain a handle on things. This is especially useful when it is a requirement to travel overseas for the company, while still maintaining order and control of stock.
An improved customer experience
Finally, cloud-based software can improve the customer experience. Having control of inventory and sales means that stock is always available for the customer, when they need it. If your company can provide this service, uninterrupted because adverse situations are foreseen and avoided, then your company really will be set apart. In addition, if there is a module in your software where the customer can order stock themselves online, then this will certainly improve their experience and keep them coming back.
Cloud-based software provides so many benefits to a company compared to more traditional methods of inventory management and manufacturing control, and these apply to both the company and the customer. It is well worth investigating a cloud-based software package for inventory management such as Unleashed Software if you truly want to take your company to the next level.
