Supply Savvy 101: The Basics of Supply Chain

So you have this big idea, a vision, a problem waiting to be solved with a tangible consumer product that will change the landscape of A, B, and C forever. Where do you start? Ushering a big idea into the physical world can’t happen without a supply chain. Sometimes we forget, as experts in the field, that supply chain can be as foreign as a language to entrepreneurs and business hopefuls. Every dot connected between a product idea up until that very product lands on the doorstep of your customer…is the supply chain. That’s putting it simply, of course there is more to the story so let’s just start with the basics.

A supply chain is the network between your brand and every supplier needed to produce and distribute your specific product to the final buyer. From concept to doorstep. Depending on the complexity of your raw materials, components, formulas etc. the supply chain can range from simplistic to complex but either way, the name of the game is to streamline your operations as much as possible.

Supply chain is the lesser known backbone of the world's economy and has a fairly short history with mass production being introduced only in the 1920’s along with the concept of interchangeable parts and assembly lines introduced by Ford. Fast forward to the 1970’s when the invention of the barcode completely changed the game of tracking and monitoring consumer goods. In the 1980’s through the mist of hairspray and bomber jackets came the personal computer, introducing new tech like spreadsheets, optimization models and algorithms that made the supply chain easier to visualize, save and share. In the present day, we have more technology available than ever before ushering a new era of supply chain greatness. 

So what role does supply chain play in your business? The short answer is: a big one. It starts with vetting and securing your manufacturers, negotiating pricing and doing your due diligence with quality assurance. You want the best possible quality for your buyer. More than likely you will have more than one manufacturer depending on the complexity of your product. Oftentimes these manufacturers are specialized in specific verticals. The more manufacturers it takes to create your final product, the more complex the supply chain. Once you have the logistics ironed out for creating your finished product, transportation is the next step. Is your product manufactured in a different country than your business? If so, it will need to travel via shipping container over international waters, or by air. If you are able to keep your production local to your country or area, then using ground transportation is an option. Each transportation plan needs to be streamlined and pricing negotiated to strategize what is both economic and convenient. Once your product is en route via planes, trains or automobiles…where is it going? Warehousing is your next step. This could mean shipping and handling happens in your garage or in a full-fledged 3rd party warehouse. Regardless, it is a crucial part of the supply chain that needs a strategy. The warehouse is the last step before your product lands in the hands of your customer. Vetting your warehousing for quality control, packing and handling care and shipping efficiency is important when choosing a partner.

The 101 version is manufacturer > transportation > warehousing > shipping > happy customer. Of course, nothing is more nuanced than supply chain and so much more goes into all of the micro decisions and strategies like packing materials, raw materials, vendor management, international logistics, forecasting, demand generation, risk management…we could go on and on but that is for another day.

Don’t it always seem to go, that you don’t know what you got until THERE IS A PROBLEM. The same could be said for the supply chain. A healthy, functioning supply chain when managed properly can almost fade into the background as a support system for other functions like sales and marketing. Major supply chain snags can throw off an entire brand ecosystem if there are production delays, shipping issues, or if there is a drastic shift in demand or surplus. That’s why it's so important to invest in your supply chain team, supply chain technologies and the time that is required to keep the machine well-oiled and moving. In our world, expanding global humanity issues can cause supply chains to be drastically affected by outside forces like climate control, global pandemics and economic shifts. The impact of a healthy supply chain is more understood and crucial than ever before.

Looking to get your product off the ground and need a world class supply chain team to run your logistics? Is your supply chain up and running but could be better? Are you looking to scale your brand with a larger product offering? Let’s talk! Supply Savvy is equipped to take on your supply chain at any stage for your brand.