As major electronics and appliance manufacturers continue to develop new and improved products at a rapid pace, the industry’s landscape and challenges are also evolving. To navigate these changes, there are a few things that consumer electronics and appliance companies should keep in mind when it comes to order fulfillment and shipping.
Observe, Predict, and Respond to New Consumer Demands
Demand for electronics is driven by disposable income. A good sign is that disposable income is on the rise; however, the economy’s volatility and consumer risk tolerance has led to a more price conscious market. In addition to a higher cost sensitivity, people have more options with a rapidly growing online and e-commerce presence for these products. Without the high overhead and operating costs of brick and mortar outlets, e-commerce companies also offer convenience. To compete with lower price points and increased competition, electronic stores have had to resort to increased advertising efforts and cut prices. Both of these actions have led to a decrease in profit margins.
Streamline Your Supply Chain to Provide Speed
With the high velocity of products and the rapid evolution of technology, the ability to adapt and react quickly is critical. Consumer demands have reached the point to where not only do they want the newest, fastest technology available, but they want it delivered as quickly and conveniently as possible. While research and development handle one aspect of the pace to market equation, the supply chain is a vital link between your product and your customer. Having effective, efficient processes in place can be a crucial differentiator not only in market share but customer retention.
Get More Out of Your Resources with Process Improvements
While price points may not be the ideal competitive ground to keep your margins in check, this risk can be mitigated by streamlining your internal and external processes. Discovering ways to efficiently store, ship and monitor inventory that is going to and from retail outlets and customers is an effective way to trim expenses. Those savings can then be passed along to the consumer, maintaining your margins and creating an opportunity to compete and differentiate.
Negotiating these growing changes in competition and consumption can be the difference between an increasing and decreasing profit margin. Combating new competitive and economic factors through expertise, resource management, and technology can be directly achieved through a lean, streamlined supply chain. Barrett Distribution Centers leverages technology and their experience in the consumer electronics sector to design and implement customized logistic plans for companies.