New Ways Are Hurting Old Businesses
New methods of doing business are taking customers away from traditional companies. The companies that are advancing have found proven ways to get ahead of their competitors. The evolving businesses have figured out better ways to cut costs and increase efficiency between stations. The methods used are focused on bettering supply chain methods and reducing overall process time. In other words, new age businesses are concentrating on getting their products from the supplier, to the customer. Firms intend to do this in the best and efficient way possible.
When businesses are focussing on efficiency, it becomes easier to respond towards product demand. When considering this in the chain of distribution, the supplier knows right away when certain inventory needs to be replaced. When there are less products available on the shelf. This way, demand is being matched in real time, and less storage space is being used for inventory. Less storage space is being used because there is a focus on just-in-time processes. Businesses strive to have inventory arrive as soon as its needed. When thinking in terms of benefits, firms are able to cut costs in the long run. Short term investments are made on technology and knowledge. However, the results do pay off, and the investments do get recouped. This is because firms are able to get the product out to their customers quicker. When they do this, the customers are satisfied because their needs are met. Satisfied customers bring growth to the company.
Old businesses that still retain traditional methods are being left out. They refuse to spend money and take calculated risks. When this is the case, their is less control over inventory and the cycle time is a lot longer. Therefore, the