Age Old Problem, Brand New Urgency

Supply chain management (“SCM”) has been around since the beginning of business. A producer had to be able to access supplies of raw materials, or it would not be able to produce products to sell. Early SCM simply involved ensuring the producer had their necessary raw materials.

The industrial revolutions in the U.S. and Europe in the 1800s and China and India in the 1900s, and the use of new materials, energy sources, machines, factory systems, and transportation systems, began to lay the groundwork for the science and discipline of SCM as we know it today – the critically important strategic coordination of processes and resources across the entire supply chain to ensure the efficient flow of goods, services, and information from suppliers to end consumers.

It is not an exaggeration here in the 21st century, and particularly after the COVID pandemic that disrupted global supply chains to an unprecedented level, to say that every producer of hard goods must have a well-funded and well-articulated SCM effort to compete in the global economy.

Solid SCM will:

·      Enhance Customer Satisfaction – because they demand delivery of high-quality products without undue delay.

·       Reduce Costs and Increase Profitability – because good SCM optimizes operations and helps improve profit margins by eliminating waste, reducing inventory costs, improving production and logistics, and lowering overhead expenses.

·      Help You Build a Competitive Advantage – because they allow you to more quickly respond to market changes, better maintain lean operations, better manage risk, and ultimately allow you to be more flexible in your pricing.

·      Have Transparency and Traceability – allowing the tracking of products at every stage, from raw materials to final delivery.

·      Utilize State-of-the-Art Technology – such as AI, Internet of Things (“IoT”), robust cloud capabilities, and RFID and other tracking technology.

·      Prioritize Sustainability – because, it turns out, what is good for business is very often good for the planet

GROW and SELL Advisors, wholly-owned by Traversi & Co., LLC, is a premier sell-side M&A advisory firm – a boutique investment bank – serving the lower middle market.  Visit us here.

For a short video clip on this topic, click here.