Small to medium-sized businesses (SMBs) have been ravaged by unprecedented supply chain challenges over the last few years. Though the initial supply chain crisis that gave birth to these challenges has largely subsided, the supply chain itself has hardly returned to “normal.”
SMBs are still contending with an increased demand for freight services, sky-high shipping prices, and volatile market conditions. But while navigating these challenges will by no means be easy, small business owners can successfully overcome them by implementing smart supply chain management techniques.
The Top Supply Chain Challenges Facing SMBs
For the most part, the supply chain challenges facing SMBs are the same ones facing much larger entities. The difference, however, lies in the fact that the latter has the resources and capabilities necessary to overcome these challenges, whereas the former must get a little more creative.
Before we shift our focus to how SMBs can navigate unprecedented supply chain hurdles, let’s explore the top challenges they are facing. These include:
Rising Shipping Costs
Over the last couple of years, the costs of just about everything has gone up. Energy, fuel, labor, freight, and even raw materials are more expensive than ever before, and the cumulative impacts of these price increases have led to a sharp rise in both shipping costs and inventory-related expenses.
SMBs must find ways to effectively mitigate these costs without passing on all of their added expenses to their customers. One way to do this involves proactively examining other business expenses and implementing tighter cost-control measures. For instance, SMBs can reduce their labor expenditures by leveraging automation tools and monitoring inventory costs with modern enterprise resource planning (ERP) software.
Disruptions
Supply chain disruptions can be caused by port congestion, a lack of availability of freight carriers, or a combination of other factors. Though large enterprises have the liquid capital necessary to weather the storm of unexpected cash flow disruptions, most SMBs do not, especially if these disruptions are protracted.
Small business owners must prepare for the possibility of future disruptions as well. Specifically, they must consider taking steps such as increasing cash reserves, keeping additional inventory on hand to avoid stockouts, and closely monitoring market conditions so that they can more effectively respond to disruptive events.
Demand Forecasting
Blindly purchasing extra inventory can make a business illiquid and create a cash flow disaster for SMBs, whereas failing to buy enough stock can lead to customer orders going unfulfilled. In order for an SMB to strike the perfect balance, the answer lies in demand forecasting.
Historically, demand forecasting has been a labor- and resource-intensive endeavor that required the support of extremely costly technologies, but advancements in artificial intelligence and machine learning technologies have made these solutions far more cost-effective and accessible.
Today, SMBs can access accurate, robust demand forecasting technologies by implementing Acumatica ERP software, a powerful platform that includes a complete array of financial management and planning solutions that can be used to overcome even the most complex supply chain challenges.
Overcoming Supply Chain Challenges with Acumatica ERP Software
Acumatica ERP software can level the playing field between SMBs and massive corporate entities that have seemingly limitless resources. Acumatica’s suite of technology includes sophisticated supply chain, inventory, and financial management tools that were once only available to organizations with massive IT budgets.
With Acumatica ERP software, you can access a scalable system that includes tools purpose-built for your industry. The platform can grow with your business, help you overcome the supply chain challenges of today, and enable you to effectively prepare for the challenges of tomorrow.
Schedule Your Acumatica Demo Today
Acumatica ERP software is an excellent resource planning and management solution for businesses of all sizes, but before you can begin reaping its benefits, you must first implement it and integrate it into your existing software suite.
The first step is to find an experienced implementation partner like Advanced Solutions & Consulting Co. We can help you determine which Acumatica ERP software edition is the right fit for your business and manage your entire deployment process. We also provide post-implementation support to ensure that you can tap into the full capabilities of your new technology. Contact our team to schedule your consultation or watch our Acumatica demo now.
Additional Supply Chain Resources
Mitigating Supply Chain Disruptions: Risk Assessment and Advanced Supply Chain Strategies
Using Supply Management Applications and Strategies to Mitigate Supply Chain Disruptions
Overcoming Supply Chain Disruptions with Modern Cloud ERP – Advanced Solutions and Consulting