Wednesday, 31 July 2013

An Alternative Strategy to Quick Response

By reducing the product pipeline it is possible to respond quicker and react more efficiently to the requirements of your customers. The QR operations strategy is focused on using multiple enterprises and business processes to make sure that products are developed and replenished quickly. The aim of QR is to increase sales and to reduce costs, inventory, and the risk of losing revenue. A value chain needs to be redesigned in order to show speed and response as well as flexibility. There are two sourcing options.

Quick Response using domestic suppliers is reviewed against the alternative which involves using offshore suppliers. Offshore suppliers provide cheaper labor costs yet the time it takes to arrive can be lengthened, increasing the chances of lost revenue. Quick response using domestic suppliers increase costs for the company but the lead times are reduced.

If you are using the offshore strategy you will need to ensure the costs are reduced when it comes to the materials and products. As the lead times can be longer the risk of losing money is higher compared with domestic response but it can work with the right logistics behind you. Contact us today and ask about our shipping services.

No comments:

Post a Comment