A QUESTION WAS POSED TO ME – Goods Supply.
The question is from a client who sells African costumes and accessories, and now has the opportunity to sell in bulk to shops.
Q: Hi Dee. Is it a good idea to supply the same things to different shops?
Do I need to disclose to the other that I’m supplying another shop with same things? What if they are at the same mall and selling the things at different prices?
A: A definite YES. I have never heard that Tiger Brands cannot supply goods for both – Pick ‘n Pay and Checkers if they are operating in the same shopping center. Anyone who wants more customers visiting their stores must make use of their marketing strategies to attract more customers. Your job is to sell your product and convince them to buy more.
When you started your business, you did not plan to sell to specific people ONLY, but the masses who are interested in your product(s). Surely, your goal was to sell your items directly to the public instead of bulk supplying to shops, however as business grows things change and you as a business owner, need to adapt. Stores are showing enough interest in your products that they want to buy in bulk and sell in their stores, and this affords you a great opportunity to grow. You need to grab this opportunity with both hands and never look back.
It is your product that you are selling, therefore no one should dictate where and how to sell it. The issue of your customers competing with one another has nothing to do with you and you have nothing to disclose, really. If you do disclose anything, let it be to convince and motivate the other to buy and display your products in their stores. It is up to them how they choose to market and beat each other with sales. You continue selling to anyone in need of your product. You deal with your own competition. If all the stores in a shopping mall need your product, let it be, supply as much as you want. All retailers stock products of Unilever, Procter and Gamble, Tiger Brands etc. Ask yourself why?
Don’t limit yourself, create a supply Chain instead. Supply Chain simply means – every company that comes into contact with a particular product, for example, the supply chain for most products will encompass all the companies manufacturing parts for the product, assembling it, delivering it and selling it.
That’s when you have to expand and learn more about the Business and growing of it, you might want to learn the stages of Supply Chain. Read below.
Plan
The entire process of supply chain management must be planned out with the primary goal of the organization in mind. The plan should also address how the organization’s goods or services will fulfil the needs of their customers.
Develop
A major component of this process is to develop strong relationships with suppliers. The potential suppliers are then contracted and conditions of delivery, payment and transportation are then finalized with them.
Make
The product is finally manufactured, thoroughly tested and packaged and then launched into the market.
Deliver
Involves the transportation of the product through various channels ultimately into the hands of the customer.
Return
Customer queries and complaints are handled subsequently. If there are any defective items present, they are returned to sender.
Compiled by Dikeledi Seoloane – On behalf of Matsobanemetja Business Consulting (Pty) Ltd., Coaching Division.
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Matsobanemetja Business Consulting Pty Ltd 