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An ongoing pandemic, high inflation rates, fragile supply chains, and labor shortages continue to pose significant challenges to the global retail industry. 

businesswoman for retail industry - inventory and supply chain management - Satellite Office Australia

The inefficiencies in the supply chain have a ripple effect that immensely impacts retail operations. From labor cost to manufacturing of goods to logistics and staffing outlets, inflation and supply chain disruption is felt at all points. While the current retail landscape is presenting uncertainties and pressures, industry leaders work closely with their partners to mitigate the effects of the supply chain crisis. 

In addition, business owners need to be prepared for the rise of raw material and finished product procurement costs, leading to surplus inventory, additional storage fees, and reduced profit. For retailers to remain competitive and meet the needs of their customers, it is imperative for them to implement solutions that prevent sales and revenue losses.

Retailers continue to look for strategies to counter supply chain delays and labor shortages. Most retail businesses take two possible routes to achieve target profit or at the very least return to previous levels of profit. 

First, they can pass on the increasing cost of business to consumers, especially if there is high demand. However, there’s a risk of losing customers that eager competitors will take advantage of. As consumers tighten their budgets, some businesses would be willing to trade immediate profits for long-term gain and keep prices low to gain brand loyalty.

The second route is to save on labor costs by outsourcing business processes. For instance, logistics and supply chain management outsourcing is a sustainable and cost-efficient choice for businesses. Retailers looking to improve operational efficiency, scale their teams, and achieve cost savings can benefit from investing in a highly skilled offshore team that can take on a variety of tasks and processes.

Outsourcing: Working Smarter in Tackling Inflation 

Inflation worldwide may continue to stretch and affect many sectors. Retailers are taking steps to combat inflation’s impact by increasing the efficiency of their budget.

In the face of these challenges, looking into supply chain outsourcing services can provide a business with a chance to strategically pivot from the crisis. A business can remain viable by looking into regions that offer lower labor costs without sacrificing the quality of work.

In comparison to other locations, offshore outsourcing in the Philippines offers an opportune combination of professionalism, quality, and reliability. Businesses rely on supply chains to survive and succeed. Supply chain outsourcing services can help reduce costs, optimize production and most importantly, increase the reliability of the supply networks.

Outsourcing is not just a cost-saving strategy. Having an offshore capacity helps retailers combat inflation and solve supply chain challenges in a number of ways. 

  1. Enhance customer support

    Consumers are demanding more from retailers who are already under pressure due to supply chain challenges and inflation. With outsourcing, you can expand your teams to provide an exceptional customer experience. You can build a remote team of well-trained customer care agents who can easily communicate and provide updates to your customers on multiple channels, such as chat, phone, and email. Having an offshore customer service team also allows you to extend your business hours and provide 24/7 support to your customers.

  2. Scale your team and increase capacity

    Your business can benefit from end-to-end support across planning, sales, operations, and management by outsourcing logistics and supply chain services. Staying on top of trends and future supply chain issues will then be easier for your business now that you have a reliable offshore team.

  3. Employ the right resources

    Retail companies are scrambling to find highly skilled supply chain management talent. However, the ongoing talent gap and rising labor costs are making it challenging for businesses to attract, hire, and retain the right resources. Outsourcing is a proven strategy to beat the local talent shortage. By gaining access to a wider pool of highly skilled and experienced talent offshore, companies are able to find resources that best match their talent needs and business requirements.

  4. Digitize operations

    In recent years, retail supply chain management has been supercharged by technology, alongside the digitization of other retail business processes. With outsourcing, you can hire experienced tech talent who can help you implement and accelerate your digital adoption. 

Offshoring Companies in the Philippines That Match Your Needs

Your ability to manage the supply chain efficiently can make or break your retail business’ success. The key to building and running an effective supply chain is to find a reliable outsourcing partner. 

Your business can improve productivity and profitability with outsourcing. Having your dedicated offshore team can help you handle inevitable disruptions and deadline pressures.

With the right offshoring provider in the Philippines, your business will find the logistics and supply chain services your business needs to successfully take off and thrive. Looking for an offshoring partner you can trust? Offshoring can be made simpler with Satellite Office. Let’s discuss your needs for free.


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