How does this apply to your small business?
My husband and I were watching a rerun documentary on the ripple effect of the economic downturn with the auto industry. The supply chain is facing serious problems. The present business model for most businesses today is built around the “Just-in-Time” (JIT) supply chain process. If the industry takes an economic hit then the supply chain can be put in jeopardy.
Based on this it is important for a small business to look at its supply chain. Good questions to ask would be:
My Small Business -
Where is my small business in the supply chain?
My Supply Chain (Suppliers) -
Who are my suppliers? What is happening to their supply chain? [Remember the ripple effect.] How is their financial condition as a business? Can I depend they will be able to supply me products/services?
My Products/Services and Supplies -
Will I be able to get the supplies and products/services I need to continue in business? Do I need to make additions to my supply chain? Should I use that as an opportunity to find a group of new suppliers? Can I use this as an opportunity to get closer to the manufacture of my products/services?
Customer’s Needs -
What products/services will my customers want in this “Economic Crisis”? Do I need to shift my product/service line to include more basic items that my customers will be purchasing?
Marketing –
Does my current marketing reflect my customer? Does the business need to retool the marketing approach to reach out to the customer in this economic climate?
Time to ask the hard questions!
Judy
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