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18. Why is competing through the supply chain important?

  • Writer: Kerry Paul
    Kerry Paul
  • Nov 21, 2025
  • 2 min read

Why the Supply Chain Matters


When people think of growth, they often picture sales, marketing, or innovation but the supply chain is just as critical. Without the ability to move raw materials, process them into quality products, and deliver on time, the business cannot survive. In fact, supply-chain management should be one of a company’s biggest sources of competitive advantage. Managing this capability is a key component of operating a global business for New Zealand entrepreneurs.


The supply chain isn’t just about efficiency. It’s about customer satisfaction. By supporting customers with reliable deliveries, you give them the confidence to promote your products. That confidence flows back into sales growth, which in turn builds scale and lowers costs. Done well, supply-chain management boosts service, reduces operating costs, and strengthens financial performance all at once.


Balancing Efficiency with Customer Needs


One of the hardest lessons is that supply chains cannot just be designed for cost efficiency. Sometimes, meeting customer needs means sacrificing margin. For example, if a distributor suddenly needs a shipment by air because a TV program has spiked demand, you need to deliver—even if it means staff working overtime and freight costs eating into profits.


Those moments hurt in the short term, but build trust in the long run. And trust is what keeps customers loyal.


Scaling with Growth


As sales grow, the growth demands constant investment in the supply chain. You have to build processing capacity ahead of demand, manage inventory carefully so that finished products are always available when orders come in.


Managing the Demand/Supply Balance
Managing the Demand/Supply Balance

An option is to build or contract offshore fulfilment centres—to shorten lead times for overseas distributors. These moves are relatively low cost, but they are essential. If supply is unreliable, distributors can stop promoting your brand.


Your next read in the series 19.  How can a customer-centric supply chain transform your business?


Building Global Businesses



A fuller explanation on this subject is outlined in my book “Going Global” www.goglobal.co.nz



Comments

Kerry Paul Business man and blogger
Kerry Paul – Stepping Out of Your Bubble Author
​

Hi, I'm Kerry. I enjoy challenging people by asking questions and presenting different views to encourage critical thinking. My 45-year career has always had a global focus, building successful relationships in over 50 countries. I am empathetic to diverse views, irrespective of gender, ethnicity, religion, culture, or socio-economic status. Join me on a captivating journey as we explore how India shaped the world over two thousand years ago, potentially leading to the first settlement of New Zealand. This blog series aims to expand readers' awareness and knowledge of how people may have come to New Zealand in pre-Polynesian times. Given the time constraints many readers face, I am providing a platform for them to consider these intriguing possibilities in easy-to-read blog posts.

 

Who were the first people to settle in New Zealand? How did India possibly contribute to any development, given its major role over 2000 years ago in some of New Zealand’s closest neighbours? These questions will guide our exploration and open up a rich dialogue about the historical connections and cultural exchanges that may have shaped New Zealand's early settlements.

 

I'd be more than happy to discuss with readers of my blog about India, its history as well as New Zealand and the suggested origins of its first settlers. 

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