There are so many ways to add value to your business. As Brian Tracy puts it, the keys to great victories are usually speed, surprise and concentration, they work in business too. A business that wants to stand out from the rest is always open-minded when it comes to sourcing their products.
Customers always have high expectations of products they seek whenever they walk into their favorite store. The only bummer is when they don’t find the products they want or a variety to choose from. This is a huge blow to the customer and such an experience can shake the trust of even the most loyal customers regarding the reliability of a business. In the business world, no entrepreneur likes to find themselves at the mercies of one supplier who calls the shots and dictates the terms.
Every retailer’s desire is to have numerous sources of products to meet the different desires, needs and wants of both the business and customer. Loyal customers are created when a business can present them with an array of product options. Thinking about it, it’s brilliant as a retailer to ensure that you have multiple sources for your products because:
Sparks Competition between Suppliers
Competition is an inevitable part of a business, no matter its size. In fact, competition is an important tool that helps a business grow and improve. It is important for your business because it provides reassurance that you’re getting customers because of the quality of your products and services.
A business that has invested in multiple sources for its products helps keep the suppliers on toes and make them improve cost and service. Every supplier will want to deliver goods and services that are only top-notch. The vendors will strive to ensure that what they offer stands out from their competitors.
If there is only one source for a product, it is more difficult for the buyer to ensure that they are keeping their company competitive. In times of tight supply, the business may be at a disadvantage in being able to ask other suppliers to accept orders.
Maintaining the quality and integrity of the product is essential and hence the more competition is there among suppliers, the better and high-quality product you get.
Protection from Risk of Demand Variability
What happens when there is a sudden surge in demand for a product? No business would like to find itself in a situation where the demand overrides the supply. The number one rule for all businesses is to always keep the customer happy. How do you keep your customers happy? By ensuring that the products and services of the business are not only of high-quality but present when they need them.
Relationship with multiple sources of your products will be a win for you because come rain come sunshine when the demand sharply increases you will able to cater to the needs of your customers. Also, you will be able to spread the demand among all your vendors without overwhelming your suppliers and still keep the customer happy.
Lower the Risks of Supply Disruption
A breakdown or sudden crisis, be it local or global that negatively impacts the supply chain distribution or production is referred to as supply disruption. While supply disruptions can be caused by other factors such as natural catastrophes, you can limit the impact of supply chain disruptions on your business by identifying the risks within your supply chain and develop mitigating factors.
Single sourcing is one of the factors that can lead to disruption in the supply hence bringing inconveniences in the business. Such inconveniences may dim the chances of prospering your business in the ever-competitive business world. The biggest boost you can give your business is avoiding being reliant on a single source of the product in question. If one supplier is experiencing frequent supply chain disruptions, you can always rely on other suppliers on your speed dial. This ensures that your business is on the move and you are not overly dependent on one source.
With multi-sourcing, your company will need to be much more proactive about managing your relationships with vendors so that you can avoid frequent disruptions of your supply chain.
Quality Control is achieved
For a business to thrive, a lot of prominence should be put towards product quality by ensuring that they are top-grade. Quality control is crucial towards building a business that delivers products that exceed customer’s expectations. It forms a solid base for efficiency in a business that wants to minimize waste and operate at high levels of productivity.
An excellent way you can ensure that your products have the highest quality control is by engaging with multiple product sources. When there is more than one supplier for a product source, retailers can easily and quickly compare the quality of the products, to ensure that both are still meeting the specs set forth from the beginning.
Get Better Prices
The more sources for your products the stronger bargaining power you have. Price is the only element that affects revenue and thus business profits. Pricing your products will have a profound impact on your business, it often affects the demand and sales as well. When you have more than one source for your product in the mix, there is an opportunity to bring costs down on products.
Multi-sourcing is a secret that many businesses use to lower prices. Using multiple sources allows you to spark a bidding war for your contract, which allows you to pay a lesser price than you would have initially done with a single source.
Even after finding great multiple sources for your products and you go-ahead to build strong relationships with them, remember that is not the end. After sourcing a product from different sources, what is of the essence is ensuring that the quality and integrity of the product is maintained. If you would like to outperform your competitors, Zignify Company will be instrumental towards acquiring top-notch products to scale your business to unimaginable levels.