If you run an SME that has an inefficient, or just overlooked supply chain you are digging yourself a hole.

SME owners and entrepreneurs are often incredibly clever when it comes to saving money, and there are endless tips on how to save money on your marketing, your recruitment, even your office supplies. But a well managed, flawless supply chain will not only make your business run more smoothly, it can change the way you see your business.

Supply chain management

There are some noteworthy examples of implementing a highly customised and yet effective supply chain. Clothing retailer ZARA is certainly one; their apparel is divided into categories based on the rate of responsiveness to trend and other factors. Their supply chains are designed to reflect that and operate according to varying degrees of urgency and trend awareness. And although this is a giant retailer and not an SME, or an entrepreneur wanting to get his or her foot in the door, there are lessons to be learned here. For an SME the need to streamline is even more pressing, and you should always ensure you're addressing your supply chain management.

As Sloane, Dittman and Mentzer write in their book, The New Supply Chain Agenda, the key is in hiring a supply chain manager that not only has a functional understanding but an insight into the over-all process. You might not be in a position yet to hire someone solely for this task, which means it's all on you. You have to be the one to make sure you have the knowledge needed to manage your supply chains.

Secure your business' future

Businesses that want to succeed in the future will have to be focused on the end-user, otherwise they will undoubtedly be left behind. And your customers expect you to provide the best product or service at the best price. You want to keep your costs down wherever you can but you can't let yourself be blindsided by that either. You have to manage change well and make sure you don't let yourself get stuck in a rut because you're stubbornly refusing to see that your way of doing things could use some updating.

Your customers want a good experience with your company above all, and a responsive supply chain might be slightly higher in cost but it will give you an edge over firms that are far too focused on total costs and neglect the customer. A great customer experience is still the most valuable asset to your brand.