A recent article in the Phoenix Business Journal highlighted a local entrepreneur and how they are bringing a new product to market. It is clear from the interview with the CEO that keeping the supply chain activities within Arizona was an important aspect of their business plan. For many entrepreneurs they may not realize the high-quality and breadth of Arizona-based organizations that can support their fast growth, such as PMA’s Fulfillment Warehouse Center.
Why would a fast-growing entrepreneurial company, such as EZ Dump, use local Arizona suppliers for manufacturing and fulfillment? We believe there are a number of reasons.
1) Variable Costs – when starting a business the most constrained resource is typically cash. Using PMA for fulfillment and an outsource manufacturer in Prescott allows EZ Dump to not only pay for the products and services as they are needed – a variable cost per item. This can free up cash for other important areas such as sales, marketing and customer support activities.
2) Expert Value –PMA and others can provide experience and skills that are hard to source in a small organization. The opportunity to leverage these skills is also applied across a large company platform that provides this expert support at much lower costs.
3) Relationships – business is all about relationships. PMA understand this aspect and creates close personal connections to the management team – they become an extension of the team. This is easy to do when you have quality outsource companies within your local market and can pay huge benefits when an issue occurs.
Entrepreneurial start-ups and small companies can benefit from using their networks to seek out quality local providers that can take on important supply chain activities. Maybe it is time for you to look for ways to save money, improve your operations and build a local relationship that can support you for years to come with some of your neighbors.