In the past month, I signed up for a course on supply chain management.
The understanding of supply chain management can be understood as purchasing management in a narrow sense. But in a broad sense, it is the management of the entire process from raw materials to final products delivered to users.
Managing suppliers should force him to reduce prices, deliver fast, and have good quality. Is this really possible?
To manage purchasing, you should have the lowest price, the best quality, and the fastest delivery. Is it really possible?
To manage logistics and transportation, it should be the fastest, the cheapest, and the quality of the transportation is the most intact. Can it really be done?
A customer once shared with me that my quotation is 20% more expensive than supplier A’s. I also explained to customers the specifications and dimensions of our raw materials, material requirements and production requirements. Our high price definitely has corresponding value. I allow customers to purchase products from supplier A first, and pay attention to users’ after-sales feedback during the sales process. Two months later, the customer contacted me again. The customer said that it had received more than a dozen customer complaints and reported that the sitting feeling of the sofa and the touch of the leather have changed. I send leather samples, sponge samples and some spring samples to customers. After receiving it, the customer compares it with the material of supplier A and finally understands why the price is 20% more expensive.
I purchase raw materials for production, and I never just pursue low purchasing costs. Because delivery time, quality of goods and after-sales service are also what we must consider. If my purchase cost has been reduced by 20%, but the quality of the product is not good due to production problems, and the customer needs compensation for complaints, then I may have to pay more than 50% for the loss.
I have always been honest with customers. We quote the corresponding price for what material and workmanship we use. We will promise our customers what we can do, and clearly tell them our difficulties and suggestions if we can't. We will not blindly agree to customers in order to receive orders for profit, because this will seriously affect the customer's later sales work.
Regarding the mode of transportation, I generally prefer sea transportation. Because of the nature of furniture, if the goods are shipped by air, the logistics cost will be very high. Unless the customer specifically requests urgent shipments, I will generally arrange for the goods to be shipped by sea. I will report door-to-door logistics costs based on the address provided by the customer. I will also list the relevant details of the logistics cost to the customer. Whenever a customer puts forward a high price or needs to delete items, I will respect the customer's opinion and provide professional advice on freight forwarding, and finally let the customer choose by themselves.
In the era of big data, prices are basically public information, but services cannot be accurately synchronized with big data. We will do our best to achieve every service to our customers. As a supplier, we will not quote the lowest price, will not produce products of inferior quality, and will not arbitrarily promise customers delivery. We will only complete each order according to customer requirements and our standards.