Tips to Start a Successful Supply Chain Business in India

A supply chain management system is an integral part of any business that includes the movement of goods from the manufacturing plant to the hands of consumers. The supply chain business process requires a lot of calculations and planning, but a successful execution can turn your business run smoothly and efficiently. India is currently going through a big startup phase, and we have witnessed many small business ideas gaining a huge share in the market. But for the overall growth of these businesses and industries, the availability of an effective supply chain business has become the need of the hour.

For operating a successful supply chain business process, we have to have certain skill sets and requirements, which we will discuss below in detail-

Skills

To run a successful supply chain business, a person should have certain skills to fuel their business from time to time. The required skills are mentioned below in detail-

1. Quick Decision Making- To sustain in the supply chain business, the operator or the manager has to be a quick decision-maker so that he/she can take up good decisions during unpredictable times.
2. Wide and clear knowledge about supply chain management- A person who is planning to start this business should have wide and clear knowledge in this field. The field of operation is very technical, and even a single mistake can cost your profit margin heavily. So whoever starts this business is required to master the basics of supply chain business.
3. Good hold in numerical- Supply chain business is all about numbers and calculations. A person with good numerical skills will be able to reduce transportation time and fuel cost through his calculations. This skill set is very important in this business, and it can help your business to skyrocket in the near future.
4. Good analytical skills- You will always need to keep track of lots of data daily. It includes profit margin, losses, performance, goals, etc. So, good analytical skills will not only help you to reduce losses, rather it will also help in tracking your growth and performance.
5. Good communication and negotiating skills- The supply chain business consists of a lot of interaction with clients on a timely basis, because of which a good communicator in your team will always be an advantage. Also, to crack a perfect deal with the client, good negotiating skills will always help your organisation to increase the profit percentage exponentially.

Requirements-

1. Capital- Firstly, to start a supply chain management business, a good amount of capital is required to meet various expenses. You can either opt to self-fund the whole business or you can reach out to any VC or lender for the capital.
2. Documentation and Licenses- In India, you have to obtain certain documents and licenses to operate legally to start any new business idea. This documentation includes trade licenses, company registration certificates, GST certificates, trademark registration, and many more.
3. Setting up short-term and long-term objectives- A newly budding company is required to set some short-term objectives along with the long-term objectives. This helps to create a clear vision and motto within the organisation and increases productivity and efficiency as well.
4. Research- It becomes very important for an organisation to do thorough research about its existing competitors. By doing this you can identify their weak points and set your goals accordingly.
5. Manpower- No business to date can fully run on its own so it becomes very important to hire efficient manpower for the growth and prosperity of the business.

Tips To Start A Successful Supply Chain Business

1. Well Versed Planning

Before you start any business it becomes very important to draw out a perfect business plan. Before investing any capital into the business, you have to decide and note down the whereabouts of this business. You have to derive a good cost model of the business, and also, deciding the location of your warehouse is very important. You have to make a complete blueprint about the financials, infrastructure, manpower size, etc., before jumping onto the business itself.

2. Keep the business transparent

You should keep your business transparent and also share your vision with all the people in the organisation. This will help you create a strong bond within the company; rather, all the people will be aware of the company’s vision and work accordingly.

3. Search for the best dealers

A supply chain business requires a lot of materials related to packaging and transportation. So, you have to conduct thorough on-field research to find out the best possible dealers who will guarantee you the availability of materials at reasonable costs.

4. Make good connections with experts

You should always try to be in touch with a few experts in the field of the supply chain who have loads of experience. By doing so, you will learn a lot from their mistakes and avoid them in your case. They will also help you to set a roadmap and will readily help you in overcoming any problems in the coming future.

5. Use your capital efficiently

This is the most important area that you have to primarily focus on in the very first phase of your business. Most new entrepreneurs usually stumble on this area resulting in mismanagement of the whole business. You have to be very precise about your funds and their usage. Follow the blueprints and that you have set beforehand and strictly stick to your plan while spending your capital. You can also use apps like Okcredit to keep a check on your business capital and be aware of your spendings.

6. Ensure smooth delivery and replacement

You have to take care of transportation and delivery of products actively to make sure no goods get lost or damaged during delivery or in the warehouse. You will also need to find out ways to make fast replacement of damaged products from consumers end.

7. Digitise your business

These days a lot of ERM software is available in the market that will help you to automate your operation and also reduce the chances of error to a great extent. A small investment in this software will yield you a great return in the future. You can also look forward to using the Staff application to simplify your staff and operations management.

8. Always learn from your mistakes-

It is very obvious that in the process of doing business in supply chain management, you will face a lot of new problems that will end up in making losses. But, you have to learn to analyse your mistakes and work accordingly from next time.

Fun Fact- Turning mistakes into success is one of the main characteristics of an entrepreneur.

9. Create value for your customer

You have to always try to give value out of your service to the customers to sustain for a longer period in this market.

10. Try making a USP of your brand

USP, also known as ‘Unique Selling Point’, means that you have to make something unique in the service that differentiates you from other competitors.

Conclusion

Lastly, we would like to conclude our article by saying that supply chain business has great potential in India. Due to the rising number of industries and more circulation of goods, the demand for this business has increased significantly. If all the above-mentioned tips are followed precisely, one can set up a great business of supply chain management.

Also Read:

1) How Can Choosing the Right Technology Help in Business Growth?
2) Types of franchise you can get under 20 lakh
3) How to Open a Cafe in Delhi?
4) OkCredit: Simple, Paperless & Secure solution for businesses

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FAQs

Q. Do we need a hefty amount of capital to start a supply chain business?

Ans. No, a small-scale supply chain business can be started in the initial days.

Q. Is the supply chain business profitable?

Ans. Yes, it is a highly profitable business if done efficiently.

Q. Is getting funding difficult for a startup in India?

Ans. No, the Government of India has launched various financial schemes to support budding entrepreneurs for their startups.

Q. Is the documentation process for a supply chain business too complex?

Ans. No, the documentation process has been minimised by the Government of India. One can simply start the business by getting a company registration & GST Certificates.

Q. Do we need to have a lot of experience to start this business?

Ans. No, if you have the required skillsets for this business, then you are good to go.

Q. Can anybody start this business in India?

Ans- Yes, anybody with a lot of dedication and interest in this field can start this business.