The supply chain has been the scene of many innovations over
the years. These innovations have occurred throughout, including vehicles,
distribution centres and a variety of other areas within the supply chain.
However, an interesting business model I saw used the other
day, left me impressed with the entrepreneur behind it. It is ideal for the SME
wanting to grow quickly with limited capital.
The SME approached certain large retailers with a product
which they did not sell, because while the product is directly related to their
target market, it is a complex product to sell and install. So he set up a
national network using other SMEs to do the complex installation, he manages
the customer in-store and then manages the whole process via a call centre.
The large retailers do not charge rent, they simply take a
percentage of turnover.
Therefore the entrepreneur has an immediate national sales network,
immediate national installation network, cash sales, and a source of credit from
the large retailers for clients giving him cash once again, and it cost him
very little to do so.
It was innovative for the large retailers as well, because they increase their revenue streams with little to no costs.
It has been done before,
but not in this way. I salute this true entrepreneur.
