supply chain management strategies

Supply Chain Management Strategies

4 Supply Chain Management Strategies for a Small Business to Succeed

Managing a supply chain can be daunting, especially for small businesses that may not have the resources or expertise of larger organizations. Supply chain management strategies are crucial for small businesses to succeed in today’s competitive marketplace. 

Small businesses can reduce costs, improve efficiency, and offer better products and services to their customers by optimizing their supply chain. That’s why 57 percent of companies believe that effective supply chain management gives them a competitive advantage

This article will explore some supply chain management strategies that small businesses can implement to optimize their processes and operation to stay ahead of the competition.

Inventory Management

Effective inventory management in the supply chain is a crucial part of any successful system. As a small business owner, it’s important to determine what your inventory needs are and develop a strategy that works with your resources. 

Conducting effective and regular inventory audits can help you determine the actual inventory levels and identify discrepancies in your inventory data.

As of 2018, more than 46 % of SMBs either don’t track inventories or don’t have automated systems for them. So, if you take care of these supply chain management strategies, your business will automatically supersede 46 percent of competitors.

Streamline your Purchasing Processes

Creating a purchase plan is an effective supply chain management strategy for small businesses. By forecasting your inventory needs and understanding when you can expect shipments from suppliers, you can ensure that you have enough stock at the backend to meet customer demand and avoid costly stockouts.

A purchase plan should take into account factors such as lead times, order minimums, and production cycles. By tracking this information, you can optimize your purchasing strategy and minimize the risk of over-or under-ordering.

Not only does a purchase plan help prevent stockouts, but it can also increase profitability by allowing you to take advantage of bulk discounts and negotiate better prices with suppliers.

Automated Order Process

Managing orders, shipping, and logistics ensure customer satisfaction and maintains a positive brand image. To optimize this process, businesses can invest in software designed for their specific needs and budget.

When a customer places an order, businesses need to ensure that the inventory is available and allocated to sales. It is also important to have a system that alerts businesses when inventory is running low to avoid stockouts. Once the order is processed, an efficient system for packing and shipping orders is necessary. Businesses should also provide a way for customers to track the status of their shipments to enhance their experience.

Customer Communication and Delivery Management

One of the key reasons for online order cancellation is longer delivery times. 38 percent of customers cancel their orders having delivery time longer than 7 days. 

Having a clear understanding of the location of your inventory during transit to the customer can enhance communication with them. This can be particularly beneficial when selling popular items during busy seasons, such as holidays. 

Businesses can display excellent customer service by communicating with customers about when they can expect inventory to arrive. It is crucial to track inventory accurately in real-time to overcome potential challenges. Otherwise, 24 percent of orders result in cancellation due to the absence of an exact delivery date.  

For instance, it may be essential to know whether the inventory is currently in the warehouse, stuck at customs, or out for delivery. 


In conclusion, growing a small business requires a deliberate and systematic approach. By planning ahead and implementing supply chain management strategies, businesses can enhance their conversions while offering a better customer experience.