I interviewed Jason Zhuang who discussed How Supply Chain Management Helps Catch Orders.
How does supply chain management help to catch orders?
Because the customers will consider the following aspects before they place orders: The first is product capture, then the product price, product quality and trust. Trust is how they trust your company and your personnel. Then there is availability, the convenience of purchasing. Finally, there is the service and the service quality. Now I want to explain how the supply chain can help these aspects.
Firstly there is production capture that is related to the development and designs.The way we design the product. We need to be concerned with the spare parts and the materials availability. So design and development are indeed helped by supply chain platforms to make sure the spare parts and the raw materials are available.
Then there are vendors doing research and development. They can give the materials and the process and the technologies we use to our engineering and development people. This is an aspect of the product capture. Pricing can be also related to the cost and the cost can be chosen. We can optimize our supply chain commerce including the customers and vendors.
We can optimize the process, the working process, and optimize our net--supply chain network. These two or three aspects can be good to reduce our cost. We can understand the cost of vendors--the costing modules, and then we can control the cost from the vendors and also we can work with the vendors to reduce the cost by some value string and some other value engineering--industry engineering methods.
Thirdly, regarding how customers trust your company. My point is that you can make on time delivery, one time or two times. But it is not easy for you to achieve on time deliveries every time. If you can have the high on-time delivery rate, this is a very strong reason for our customers to trust this company. So many have the trust to our companies. They can freely increase orders to us. And the fourth point for the availability is data management. This is a core part or function of the supply chain. If you can make good availabilities and good return promises to the customers, they will suddenly like to place order to us.
Do have any examples of success?
For example, HTC. Because HTC had a shortage of their camera. So they could not deliver on time for their new model mobile phones. In that case, the customers had to choose Samsung or Apple. In this example, they could not deliver on time so they could not take a market position. Samsung and Apple were more successful. The customer did not trust HTC. So HTC could not get more orders from the customers and they could not get a position of the market.
A good example is Apple. Apple can improve their on time delivery. Even in a short deliver time,they can make their supplier to make on-time delivery. Thus, the customer is very happy to buy Apples because they can provide sufficient supply. And this is a example for the availability.
Regarding convenient purchasing. Because sometimes the customer places an order with you is due to not wanting to place an order, they didn’t want to spend time--spend more time to deal with the other suppliers. You need supply chain organization abilities. Also, you can provide these amenities. You can also provide your supply chain solutions to your customers. When you can provide this kind of solution, the customer will likely place orders for more items because they can get more convenience for the purchasing. There is no need to deal with more suppliers. There is no need to negotiate with other suppliers. On the final points is the service and quality. Service includes whether you can provide the shipping, door-to-door service. You can provide the shorter time. You can provide less MOQ and also they can provide full set solutions.
Can you also provide a brief background of yourself?
Yes, I’m a freelance supply chain consultant. I started to work in this industry from 2000 as a supply chain manager. I have been in the consulting area for more than three years. I focus on change management including the organization, reconstruction and team building. I have been in supply chain consultant, I have worked in various areas and projects including auto parts, machinery, and cross border e-commerce and logistics.
And thanks again for sharing today.
About Jason Zhuang
Freelance Supply Chain Consultant