Blog Article

ALOM is a global leader in supply chain management serving as a strategic partner to our customers by expertly and seamlessly conducting their key business functions from manufacturing to marketing.

Low Tech Supply Chain Will Sink High Tech Products

By Jeremy Murchland

Congratulations! Your company has developed the latest and greatest, high tech, “life-changing” home automation device. But without an effective and efficient supply chain, your hope of becoming the next Steve Jobs will languish on empty warehouse and store shelves because you couldn’t scale manufacturing and distribution to meet market demand. Soon, you’ll be faced with increasing procurement costs, import/export issues, parts shortages, quality lapses, regulatory compliance problems, and an overall lack of visibility into your supply chain and how it’s performing. Customers are looking for increased transparency into how products are manufactured, and when their orders are shipped and delivered. They want MORE information, MORE options, and FAST AND ACCURATE fulfillment and delivery. All at a LOWER COST.

The question is whether your supply chain can deliver and adapt? Do you have the capital to invest in supply chain technology, infrastructure, and people in order to keep up with market expectations—all without compromising your core competency as a product innovator? Do you have the tools and processes to effectively manage MRP, S&OP, and CPFR and deliver a competitive advantage? Do you have money to invest in an Advanced Planning System or WMS, TMS, or LMS? Do you even care about all of this alphabet soup? You should.

Many organizations do not have the time or money to invest in their own supply chain. They are brilliant technology innovators but lack expertise in building and maintaining a complex global supply chain. That’s why supply chain management companies like ALOM exist today. We are experts at engineering and implementing custom supply chain solutions that are built around our customers’ long-term business strategy, scale as sales grow and channels expand, and leverage our technology and operational process expertise to deliver on demanding, diverse and growing customer requirements.

Investing in the supply chain is not an option. According to a recent article in Supply Chain Quarterly, “this matters because Gartner’s research has consistently found a strong correlation between a company’s supply chain maturity and its overall business performance. Nearly 90 percent of organizations at the highest (Stages 4 and 5) supply chain maturity levels are above-average performers or leaders in their industry while, regrettably, over 40 percent of companies at the lowest (Stage 1) supply chain maturity level are below average.” Many companies are looking at how to innovate within their product portfolio and their service offerings, but are not focused on advancing their supply chain. Their supply chains continue to run on outdated methods using tools developed decades ago. It is virtually impossible to compete, regardless of how innovative your product might be, if you don’t either invest in your own supply chain OR partner with industry experts like ALOM that have made the ongoing investments in technology, processes, and infrastructure that you can leverage in order to manage your costs and investment capital more effectively.

When considering how to scale your business in order to deliver the millions and millions of devices you intend to sell in the coming years, consider developing a partnership with a supply solutions company that:

  1. Invests in technology that supports your core business processes and end-user requirements.
  2. Puts quality first when it comes to developing and executing customer solutions.
  3. Is flexible, adaptable, and innovative.
  4. Has a team of tenured, dedicated, and knowledgeable supply chain professionals.
  5. Has the global resources to handle the entire process from material sourcing to returns management and refurbishment.
  6. Is trusted and proven by performing at the highest level for top global brands.

Following this strategy will free up valuable resources to focus on what made you successful in the first place and position you for continued growth and long-term success.

Contact us today to talk about your business objectives, and how we might be able to partner together to ensure that your supply chain is leveraging best-in-class people, technology, and processes that give your business a competitive advantage.