You may be a manufacturer of products in the factory or a trader with products in the shop or warehouse. You have to be careful that nothing goes wrong with the products you have in the warehouse or shop. There are a number of things which can go wrong including the following;
Quality of products
You have to ensure the goods meet the accepted quality standards at all times during the supply chain. The goods have to be stored under recommended conditions to maintain the quality. They also have to be consumed within the specified time in consumable products. For example you could have rotten products in the supermarket.
No demand for products
You have to be careful in case you dealing with fast moving items as their demand is often seasonable. The demand also changes very fast in case of goods for children and women. For example Christmas trees and cards are only used in Christmas periods. Seasonable products have to be produced at the right time and in right quantities. Remember if you do not sale them you have to keep them until the following season!
Security of goods
The security of goods is increasing becoming of concern to the business community. First and foremost you have to insure your goods with a reputable insurance company against fire and theft and other hazards. Physical and non-physical security must be enhanced in places where the goods are kept.
Pricing of goods
If you have to remain competitive on the market then you have to ensure the cost of production or purchase of goods is as low as possible to avoid having goods which are too expensive for the market. In case you are importing, it is advisable to compare prices around the world with local prices.
Fake and counterfeit goods
In case you are importing you have to ensure you do not import fake goods as there quite many on the market. You have to be aware that not everything in a branded container is original. Some are fake goods. You can only guard against buying fake or counterfeit designer goods if you always get your suppliers from authorised dealers and not from the cheapest source. The cheapest sources of supply can be risky if not very well verified.
John Muhaise Bikalemesa
Director: Big Drum Advisory Services Limited