3 Methods Used by the Supply Sales Managers to Drive Value in the Channel
On the surface, measuring value in the supply chain appears black and white: a quantifiable and objective piece of data that defines a company’s status. But, the process in which a company acquires its value is anything but simple.
But if one thing does remain consistent, it’s this: all businesses want more value.
So, how do businesses participating in the supply chain increase their value?
I can tell you it goes far beyond strong negotiation tactics to acquire a cut-rate unit cost. Integrated supply chains of today rely on a balanced approach that focuses on developing quality products over inexpensive productivity. Supply experts have shifted from a traditional ‘transactional-base’ philosophy to one that relies on B2B cohesion, understanding, and mutual success. The outcome may mandate additional time and work to solidify, but the results are far superior in authenticity and opportunity.
Here are 3 Philosophies Supply Professionals Are Implementing to Drive Value:
1.) Connecting Consumers with Suppliers
Aligning end-customers’ needs, value proposition, consumer-based, objectives, etc., with suppliers’ end-product, is imperative for gauging value in the supply chain. Recognizing the end customer’s needs is the most vital piece of information in the channel, as it dedicates the sales and operational direction for all businesses (in the supply chain). The more a supplier can realize the needs of the end-customer, the better opportunity both supplier and partner have at creating value for their Value Network.
Strategic thinking in today’s supply chain relies on the dissemination of information, which is, essentially, the dissemination of transparency. The more supply experts are willing to extend information across all internal/external teams, the more they will be able to accelerate productivity, improve supply chain risk management and deliver on what their end-customers want.
2.) Low-Risk, High-Margin Services
After-sales services have proved influential in the supply chain. Post-purchase packaged solutions allow supply experts to display their unique proposition to end-customers; the reward highly outweighs the risk, which makes this an alluring POS [revenue widening] strategy that is designed to showcase a company’s creativity, value proposition, and customer loyalty.
Here are 5 unique and highly profitable advantages of after-sales services:
- Services that competitors have a difficult time evaluating
- Each after-sales can be tailored according to the purchasing behavior and/or wants and needs of the consumer.
- Ongoing communication ensures that customers are satisfied, and elaborates on their pain points, questions, concerns, and trust.
- Increases the odds of customers becoming long-term patrons.
- Satisfied customers, combined with consistent communication are more likely to purchase by-products.
3.) Joint Manufacturing
It’s becoming commonplace for supply pros to develop strategic production relationships with their partnering manufacturers [post-purchase]. After all, who better to ask for tactical guidance than the suppliers who built the product for you? This tactic also works psychologically as well, as “asking for help” is an endearing and subtle compliment suppliers are likely happy to help with. Research shows that companies that participate in this business philosophy are less likely to endure technical problems, strengthen B2B partner longevity as well as improve on after-sale service with end-customers.