Options ... so many options.
Many options in business are tempting, viable and potentially financially rewarding.
Globalism and digital channels have opened up, with boundless opportunities to identify, utilise and advantageously exploit multiple supply chains.
What a wonderful web we weave. The roles of the traditional “middle-man”, that is, wholesalers, distributors and consolidators have been under review and subjected to extreme scrutiny and cost pressures. Adding value to relationships is now an imperative, complementing bulk-buying and administration advantages.
Rapidly increasing consumer and corporate acceptance of house and generic brands has intensified and broadened the supply, distribution, branding, retailing, marketing, advertising and promotions of companies’ products, services and applications. Competition, substitution and disruption are intense and increasing.
Franchising, licensing and brand-centred strategic and collegiate alliances have also come under pressure. In recent times there has been conspicuous “push-back” from previously subservient and dependent “down-stream” operators in countless networks. Consumers are not alone in verbalising calls for exercise of their rights.
The scenario has become more complex and the rate of change accelerated since and because of the declaration of the COVID-19 pandemic in March 2020.
Long-standing business models have been, or should have been, subjected to forensic review and refinement, or outright re-building.
YES. NOW. NEW.
Imagine ... previously unimaginable supply-source options. The discounting and marginalising in value of recognisable brand names, widening acceptance of, and in some instances, preference for housebrands.
There is increased resistance by consumers and clients of paying premiums, a de-emphasis on warranties, service contracts and structured maintenance programs, because of the “purchase-utilise-dispose” philosophy.
Greater measures of value are being assigned to easy and immediate access to products, services and applications. There is a conspicuous intolerance to supply disruptions and delays, leading to spiralling declines in repeat, loyal and referral business.
Individually and collectively these market forces have created a new set of dynamics in commerce at large. It is those that business owners, leaders and managers need to address, marshal and control.
Design and refine typically comes before decline. Inertia too leads to decline.
WITH QUALIFICATIONS
Each of the seeming positive and appealing characteristics and attributes of the new marketplace comes with differing measures of compromises, imposts and barriers.
Over-reliance on single or limited numbers of suppliers exposes businesses to potential disruptions, delays, cost imposts and transportation impediments. Minimum order-sizes are being progressively introduced by global suppliers, nominated shipping times are being extended, credit is being curtailed and full pre-payments are being invoked.
Awareness of the availability and choice of numerous alternatives of supply, brands, products, services and applications falls well short of ongoing, mutually dependent and rewarding relationships from physically diverse sources.
In the background, the influential dark hands of national politics are being played out.
Global trade, supply chains in particular, are subject to national government influence and control. Therefore, government-to-government relationships are important considerations. In these volatile times it is difficult to determine what is politically correct and probable.
FAIR. EQUITABLE
On reflection, there is little balance and stability in the economy at large. No one circumstance fits all. Best is a meaningless term and unreachable, let alone an unsustainable goal.
Indeed, at best, we can only hope to strive for and attain optimal outcomes which contribute to competitiveness, viable financials, harmony and cohesion.
What is deemed to be fair and equitable by one may not be universally accepted.
It will, however, be a great starting point for effective engagement. Getting products, services and apps to market is fundamental, if not pre-emptive to success.
In short, all commercial entities are affected, utilise and depend on efficient, effectual and productive supply-chains. Whose supply-chain is another issue.
TAKING CONTROL
Having the ability and discretion to exercise control over the full supply-chain and operations is appealing, alluring and can be both fulfilling and profitable. Achieving optimal outcomes is both challenging and complex. All options should be identified, isolated, analysed, prioritised and then subjected to structured, disciplined and measured selection criteria.
The permutations and computations possible with numerous variables (read: sources, products, services, applications) can be almost limitless, can and do create confusion, anxiety, frustration, inertia and inefficiencies – among other things.
Suffice to say, the future is not and will not be a lineal extension of the past and the present. In all probability the status quo will be irrelevant and could be a major impediment.
Marketplace realities, when overlaid with structure, discipline, objectivity, malleability, openness and understanding tend to be resilient and sustaining.
Certain long-standing business principles appear immutable. Many such beliefs, policies and practices have an air of being eternal. Others are mortal and have finite life cycles – in which decline and termination are inevitable. Numbered among the latter are outdated and outmoded supply-chains.
MAKE A COMMITMENT
The present, as challenging and changing as it is, is a great starting point to determining the fundamentals of:
· SUPPLY CHAIN
· BRAND MANAGEMENT
· PRICING/PROFIT POLICIES
· PAYMENT SYSTEMS
· DELIVERY NETWORKS
· SERVICE STANDARDS
Optimal, multi-channels in each element will be prudent to address any current, pending, probable and possible evolving contingencies.
Start early in the designing and building of your unique pathway to market.
Barry Urquhart
Business Strategist
Marketing Focus
M: 041 983 5555
E: Urquhart@marketingfocus.net.au