In the ever-changing retail industry, mastering the art of forecasting is key to optimizing...
We’re fortunate to have Brandon Morris, President and Co-Founder of Barons share his experience about how retailers can help mitigate supply chain risks. Brandon has been a QuickBooks ProAdvisor for over twenty years and specializes in helping design and integrate end to end accounting and accounting technology solutions for clients.
The impact of supply chain
Product availability is critical for a retailer's reputation. Today more than ever, customers expect to order and receive orders within a short timeframe. This poses a constant challenge for ecommerce shop owners who must navigate unpredictable supply chains while ensuring timely deliveries. This is no small feat given how global events such as weather and labor shortages can cause unforeseeable delivery disruptions, making it difficult for retailers of all sizes to meet customer expectations consistently.
Today’s landscape post pandemic
Retailers are facing many issues that have changed since 2020.
- Product reliability: Retailers may need to find multiple suppliers to help ensure they can receive stock if there’s a disruption with a primary supplier. Some retailers also try to work with suppliers in different geographies to mitigate delays in cases where some distribution routes are blocked.
- Inflation: Rising costs are impacting everyone. Retailers must incorporate and pass along or take a hit when the cost of delivery increases. Delivery can be impacted if shipping routes are rerouted or if shipping is changed to alternate methods, such as air freight.
- Labor shortages: According to a Logistics Viewpoint survey, labor-intensive transportation and warehouse operations are suffering the most.1 The labor shortage that started in 2020 has yet to return to pre pandemic levels. Without sufficient labor, the movement of goods can be inefficient and unstable.
Mitigate risk with the right systems
Brandon shows many of his clients how to mitigate supply chain risk. Automating processes is key. Setting up the right systems can help address issues from the outset. Brandon recommends finding systems such as accounting software and then integrating with a flexible Point of Sale (POS) that can grow with your business.
With integrated systems helping operate your business, you can stay on top of your inventory with up to date information. Regular reporting can help you understand your sales trends so you can set purchasing schedules or recognize when a product is selling faster or slower than normal.
Best practices
To determine which tools are right for you, Brandon recommends starting by listing your top 3-5 pain points within your business. There are likely many available tools, however the key is finding the right tool(s) to address your business needs.
Brandon’s top tip: get expert advice.
An expert solution provider can quickly assess the technology and tools you'll need to address your challenges. With experience working with clients facing similar needs, they can offer best practices and recommend effective toolsets. Their vendor relationships can streamline setup, adoption, and tech integration processes. An experienced expert can also identify potential issues that might not be immediately apparent, such as finding an accounting system that seamlessly integrates with your POS and ecommerce channels to ensure synchronized inventory across all channels without manual intervention.
Once we’ve discovered the right tools, implementation is just as important. Brandon focuses on collaboration, communication and training across the various teams involved to help make it a streamlined process.
“Make sure to set expectations for everyone – the client teams, vendors and solution provider. It makes the process smoother,” says Brandon.
Get in touch with Brandon or one of our other expert retail QuickBooks Solution Providers for guidance in finding the right system to help you mitigate supply chain risk.
All opinions and advice expressed here are personal and do not represent those of Intuit QuickBooks. We recommend you work with a professional to assess your specific business needs. Additional terms, conditions and fees apply with app integrations.
We provide third-party links as a convenience and for informational purposes only. Intuit does not endorse or approve these products and services, or the opinions of these corporations, organizations, or individuals. Intuit accepts no responsibility for the accuracy, legality or content on these sites.
1 Labor Shortages in Supply Chain & Logistics: They’re Not Subsiding
