International Business: Optimizing Supply Chains for Maximum Profit

Dr. Rayyan Ep
3 min readMar 1, 2021

Creating a balance between profit maximization and customer satisfaction can be a tough task. To achieve this balance in your business, you’d have to optimize your supply chains for maximum profit. In this article, we’ll be closely examining some effective ways to do this. Do read on!

Supply Chain Optimization

Supply chain optimization is an effective technique for maximizing your sales. It also ensures the continual development of market desirable ideas, products, and services.

International businesses set up supply chains to expand their market reach. They also do this to minimize costs and, to a large extent, improve their customer service. According to research, 79% of businesses that set up optimal supply chains grow their revenue by a lot.

However, supply chain management can be a hard nut to crack if you don’t know the necessary actions to take. First, you must be able to correctly diagnose your problems. After identifying these problems, you can then confront them by creating effective solutions.

There’s, however, no one-size-fits-all for supply chain optimization. But below are some handy tips you can follow to optimize your supply chains for maximum profit.

Evaluate Risks Associated With Your Current Supply Chain

The first step to optimizing your supply chain is to carry out a risk analysis. These risks are usually categorized into two:

  • Internal; and
  • External

Internal risks are those within your control. These risks, among others, include production risks, disruption in operations, breakdown in communication, etc. External risks, on the other hand, are those beyond the purview of your business. These risks could be either demand-, supply-, and environmental-related.

Once you’ve identified all the risks attached, the following actions would be plain sailing.

Zero in on Your Strengths

Many businesses fail because they do not focus on their strong points. They forget supply chains have evolved into a system of interlinking networks. A network that could go beyond functions, domains, and territories.

So, in the hope to reduce costs, many companies take on different tasks and projects in the supply chain. An action that can ultimately set them back and thwart their overall performance.

One way to overcome this challenge in supply chain management is to outsource set tasks and projects. Outsourcing will not only help you to build upon your strengths. But, it’ll also help to enhance your value, reduce cost and increase productivity, as well.

Inventory Management

Inventory management is a crucial part of supply chain management. In a nutshell, it is the management of supply chain inventory.

Supply chain inventory is a point at which all supply chain components meet.

Inventory management presents itself as a great way for businesses to create an equilibrium between demand and supply. It’s also one of the ways businesses can attain an even balance between the complex processes of supply chains.

By extension, inventory management also helps to minimize risks by enhancing the company’s supply chain performance.

Incorporate the Use of Mobile Technology

Innovative technologies, as I discussed in a previous article, have continued to shape businesses all over the world. The outbreak of the COVID-19 virus in 2020 is ample testimony to this fact. Many businesses were forced to adopt the use of innovative technologies to continue operation.

So, you see that we can’t undervalue the impact of technology the world over?

Mobile tech is just as important in supply chain management. It helps businesses to digitally create solutions for improving the supply-chain system.


Optimization ensures you invariably satisfy your customers and also grow your business. Now that you’ve learned some of the effective ways to do this, taking immediate action shouldn’t be difficult. So, take the right action today and make your company better off!!



Dr. Rayyan Ep

A Venture Builder based in Asia with over 20 years of entrepreneurial experience across APAC & MENA. Often described as a “Technopreneur”;