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The Top 5 Supply Chain Management Problems Impacting B2B Sales and How to Fix Them

By: Robert Hennessey

The Top 5 Supply Chain Management Problems Impacting B2B Sales and How to Fix Them

Supply chain management problems can have a significant impact on business-to-business (B2B) sales. Many supply chain issues can lead to lost sales and decreased profits. If you are experiencing any of the following supply chain problems, it is important to take action to correct them as soon as possible. In this blog post, we will discuss the top 5 supply chain management problems that are impacting B2B sales and how to fix them! Also, will provide some tips on what steps you can take to minimize supply chain disruptions in the future.

While B2B sales of complex or high-priced products or services can take anywhere from 6 to 36 months or more the current supply chain problems are impacting orders placed as far back as 2018. The important issue is given a host of climate change, pandemic and geopolitical upheaval the time to get prepared for what is next is now. 

Communications
One supply chain management problem that is impacting B2B sales is poor communication. Communication problems can cause delays in shipments, miscommunication of orders, and other issues. To fix this problem, it is important to have a clear and concise communication plan in place. This plan should include who is responsible for communicating with customers, how often communication should take place, and what information needs to be communicated.

Inventory Management
Another common supply chain management issue that can impact B2B sales is inventory management. Poor inventory management can lead to stock-outs, which can frustrate customers and cause them to look elsewhere for products or services. And while others may be having similar problems it is important to protect your brand identity and customer loyalty during these times too.

To fix this problem, it is important to have an effective inventory management system in place. This system should track inventory, reorder levels, and lead times. If you have been operating primarily on JIT you may want to hedge your bets by developing some inventory alternatives that would provide service on the bulk of your sales during a supply interruption.

Transportation
A third supply chain management problem that can impact B2B sales is transportation. Transportation problems can cause delays in shipments, damaged products, and other issues. To fix this problem, it is important to have a reliable transportation plan in place. This plan should include the use of multiple carriers, routes, and shipping methods.

Warehousing
A fourth supply chain management issue that can impact B2B sales is warehousing. Poorly managed warehouses can lead to stock-outs, damage to products, missed shipments, and other issues. To fix this problem, it is important to have an effective warehouse management system in place. This system should track inventory levels, reorder points, and lead times.

Internal Customer Service
The fifth and final supply chain management issue that can impact B2B sales is customer service. Poor customer service can lead to lost sales and decreased profits. To fix this problem, it is important to have a strong customer service team in place. This team should be able to handle customer inquiries, complaints, and returns.

Other Tips for Improving Supply Chain Management

 Here are some additional tips to minimize future supply chain problems.

1. Make every effort to shorten long lead time products

If you have business-to-business products with long lead times that are too long, you could be missing out on sales opportunities. The ideal situation is to have a lead time that is always as short as possible without sacrificing quality or service. There are several ways to shorten your long lead time products:  

- Improve communication between you and your suppliers

- Streamline your manufacturing process  

- customize inventory levels as needed

- Use just in time manufacturing methods  

2. constantly monitor and adjust input costs

Supply chain costs can eat into profits if they are not carefully managed. There are a few ways to reduce supply chain costs:

- Improve communication between you and your suppliers

- Source from low-cost countries

- Automate processes

- Use cheaper transportation options

- Negotiate better deals with suppliers   

While a lot of these supply chain cost actions sound easy to do the important caveat for each one, is to be sure you are not sacrificing quality or supply chain reliability as you make adjustments always have a plan B.

3. Consider product redesign for complex products

  if your B2B product is too complex to make reliably, problematic to source materials, or difficult to manufacture with less-than-optimal yields. This can lead to delays and errors. To simplify your B2B product:  

- Break it down into simpler components

- Use standard components whenever possible

- Automate assembly or production

4. Constantly evaluate and weed out underperforming suppliers  

If your B2B suppliers are underperforming, it can lead to delays and disruptions in the supply chain. To improve supplier reliability:

- Select suppliers carefully

- Conduct audits of potential suppliers 

- Choose suppliers that have a good track record 

- Build strong relationships with suppliers  

- Establish performance metrics for suppliers

 - Provide incentives for on-time delivery 

- Have backup suppliers in place

 5. Often overlooked is the impact of poor production forecasting and scheduling
 

If you do not have a good handle on B2B demand forecasting, it will surely lead to stock-outs and lost sales. There are a few ways to improve b B2B demand forecasting:

- Use market research

- Gather data from customers

- Use data analytics tools

- Work with experienced forecasters

   

Bottom Line:

Constantly work to Change Art to Science, (CATS). Eliminate the CATS in your supply chain as you would in your manufacturing operations. Changing art to science today in supply chain management is no longer a good thing to do it has become a must in today’s unpredictable world. If you are experiencing any of these supply chain problems, it is important to take action to correct them as soon as possible. Dependability and availability are the cornerstones of supply chain management so you can avoid lost sales and decreased profits. Do you have any other tips for fixing common supply chain problems? Share them with us in the comments below!


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