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Supply chain efficiency leads to bottom line success

A strong supply chain can lead to more full price purchases, and thereby a stronger company. Speed to market is in the realm of how well your supply chain is able to get a product from the starting line to the checkout line, and that means having an efficient, well organized, and consistently optimized supply chain. According to Jeff Berman of Logistics Management, the key to making an efficient supply chain is limiting the amount of “touches” a product receives before getting to the customer and understanding what your supply chain needs specifically. According to Greg Rake (senior vice president of supply chain at Pier 1 Imports), the crux of supply chain's ability to save money stems from its ability to move products faster: “The faster you get products to market, the more full-price sales you get,” said Rake. “When you look at what we do, we understand there is some period of time where we bring in a brand or a new product line, color, or style, we have some sort of a proprietary system””or timeframe””where we actually are allowed to be the only company in the market that has that style, color or whatever that is. When [larger companies] get your business, it is going to be a bad day. If we can figure out a way to get a new product into the market prior to Target or Wal-mart, Kohl's or J.C. Penney”¦we get to enjoy full-price sales for some period of time. This shows why speed to market is important.” Supply chains provide the fundamentally important movement of products from you to your customers, and making absolutely sure that the supply chain is as healthy as possible is the best way to make sure you're getting that product to your customer as fast as possible.

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