National companies and multinational corporations have pushed small businesses out of the marketplace ever since the industrial revolution. But the little guys and gals can take on the big boys - and win - if they rethink and reboot their business model. When it comes to manufacturing, for example, small companies usually find a niche market, then produce excellent products that appeal to a limited but significant consumer base. The problem is that's where their business model stops. Products are simply sold to retailers or multinationals for distribution. If small businesses can master the supply chain - taking their niche products right to the customer's doorstep - they can increase their market share and dramatically boost the bottom line.
Take Wike, an Ontario, Canada based manufacturer of custom-made bicycle trailers. Instead of selling product to retailers, company founder Bob Bell decided 12 years ago to go direct: "We manufacture and sell direct, cutting out the need for distributors and retailers. Our customers come to our website and place their order. We then partnered with UPS to ship our products across North America." With the success of this continental business plan, Bell then looked offshore. "Seven years ago, when we began selling into Europe, we evolved our relationship with UPS and had our products shipped to a UPS warehouse in Coventry, England." Now Wike bike trailers are sold in the U.K. Finland, Germany, Denmark and Sweden. The effect on the bottom line? 25% to 30% year - over - year growth for the past three years. Now Bell is looking for more opportunities under the Canada - Europe trade agreement negotiated last year.
Reflecting on the success of Wike, Jim Ramsay, Vice President, UPS commented: "Small to mid -sized businesses must think about integrating supply chain into their business model more than they have in the past. Supply chain is not just the domain of the major retailers or multinationals around the world, it applies to smaller businesses too."
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