Mike Roer

Once you have a market-tested business concept you need a strategy to produce and distribute in quantity. This is relatively easy for a service business (although the management may become quite challenging once you grow to the point where you personally cannot serve every customer).  Virtual products, such as mobile apps, music, and digital images are also easy to distribute via a website, iTunes and the Google Store.  However, a physical product requires a bit more research and planning to manage your Supply Chain: the movement and storage of components and finished goods from points of origin to points of consumption.

The goal of Supply Chain Management is to minimize inventory, while maintaining adequate supplies to keep retailers adequately supplied and online consumers satisfied with delivery time.  A successful strategy will include answers to the following: 

  • Will the product be sold online and shipped direct to the consumer?
  • Will you also distribute through retail establishments?
  • Who will produce the product? (Will you do the manufacturing or job it out?)
  • Where will you store the finished goods until delivered?
  • Who will pick, pack and ship the orders?
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