The supply chain management with financial management refers to the process by which the business enterprise brings its products and services into the marketplace. An entrepreneur may have a great idea to introduce a unique product or service into the market and find the necessary funding to transform this great idea into reality by creating this unique product/service. With time, this entrepreneur may even formulate and implement an effective marketing campaign to create awareness among the public about his/her unique product but then what? This unique product or service will not be a success unless it reaches the customers in the market at a price that they feel is competitive and worth buying. This is where supply chain management becomes an essential element in assisting entrepreneurs to achieve the competitive edge in the marketplace over their competitors.
In the USA, financial expert and guide Lewis Daidone says to create a unique product/service at a competitive price, an entrepreneur needs to have an adequate supply of components that are available at the appropriate price and fits within his/her budget. This is where an entrepreneur’s suppliers appear to create his/her unique product/service. Suppliers provide an entrepreneur with the raw materials he/she need to create his/her unique product. Moreover, an entrepreneur of a business enterprise may consider becoming its own raw material supplier if the costs are not prohibitive but in reality, this is rarely possible.
Once the entrepreneur has a found a group of suppliers to provide him/her with all the necessary of raw materials at a competitive price that fits into his/her budget along with the necessary funding, the production process is becomes important. It is imperative for the entrepreneur to put his/her strategic production plan into motion by establishing an assembly line to produces this unique product at a rapid rate. However, the entrepreneur still needs to get his/her unique product in the market and ultimately to the end customer.
Transportation and distribution Channel
The location of the market and the ultimate customer in relation to the entrepreneur’s production facilities dictates the mode of transportation and distribution channel the entrepreneur needs to adopt. The most common modes of transportation are by sea, air, rail or road.
If the marketplace and end customer of the entrepreneur’s unique product is located in a place, which is accessible only by sea or air, then the entrepreneur may consider transporting his unique products by air or sea depending on the cost. As this transport cost ultimately has to be borne by the customer, this is a determining factor in assisting the entrepreneur achieve the competitive advantage in the market place.
If the entrepreneur needs to transport his/her unique product in bulk over land, he/her may consider rail transport to exploit the economies of scale. Rail locomotives travel on predetermined tracks that decrease friction and enhance environmental efficiency. As a result, a single locomotive can tow a large number of railway wagons.
Lewis Daidone CPA helps many businesses in the above and gives them salient advice for business development and progress. In reality, an entrepreneur may have to employ a combination of transport methods to ensure that his/her unique product/service reaches the marketplace and finally to the ultimate customer at the most competitive price.