Navigating New Markets: Key Considerations for Developing Supply Chains in Emerging Countries

As reported by Kormotech, entering a new market requires more than just setting up the basics like sales channels and logistics; it’s about building a responsive operational framework.While establishing partnerships and understanding regulations is crucial, being able to adapt swiftly to demand changes is equally vital. This adaptability hinges on having access to current sales data.

In our fast-paced world, demand can shift unexpectedly due to various influences—think changing consumer preferences or viral trends on social media. As an example, last year in Japan, a popular cooking show led to an unexpected spike in demand for matcha products, leaving manny retailers scrambling.

If manufacturers lack real-time insights into these shifts, they often onyl realize there’s an issue when they receive urgent orders. By then, ramping up production can be challenging and costly. This not only eats into profit margins but also damages the supplier’s reputation with partners.

To combat uncertainty, some businesses opt for larger inventories; though, this approach has its pitfalls. A staggering 80% of small and medium enterprises struggle with inventory management and forecasting needs accurately. Interestingly enough, the trend of relying on bigger stock levels has decreased significantly—from 59% down to 34%—due largely to rising storage costs in recent years. The takeaway? Inventory alone can’t substitute for precise demand visibility; aligning data with production and logistics is essential for creating a resilient supply chain in any new market.

Effective data management can set you apart from competitors when entering unfamiliar territories. There are two main collaboration models between suppliers and distributors: one based solely on purchase orders without shared sales performance insights and another that utilizes secondary sales data shared through systems like CRM platforms.The latter allows suppliers to track demand fluctuations almost instantly.

• Swift response: With analytical tools at your disposal, you can identify rising product demands early on and adjust your operations accordingly—minimizing risks of shortages or excess stock.
• Avoid unnecessary expenses: Real-time sales data means no need for surplus inventory “just in case,” helping maintain optimal stock levels without tying up capital unnecessarily.
• Punctual marketing execution: Understanding regional differences in product popularity helps launch timely marketing campaigns that stabilize sales across diverse markets.
• Enhanced service quality: Aligning supply closely with actual demand ensures timely order fulfillment while maintaining product freshness—a key factor in building trust as a reliable supplier.

The impact of secondary sales data cannot be overstated—it fosters lean operations by eliminating wasteful excesses. When partners share detailed details from their systems—including SKU-level performance metrics—the manufacturer gains invaluable insights into current inventory levels as well as upcoming promotions which can be updated frequently.

This live view of market demands becomes especially critical when venturing into new territories were historical forecasts may not exist yet; it helps avoid both stockouts and overstock situations by precisely matching supply volumes with real needs.
For example: if a retailer suddenly sees high interest in an eco-amiable cleaning product that sells out faster than anticipated—they might typically rely on sea freight but could switch gears to air freight despite higher costs as keeping customers satisfied outweighs those additional expenses!