• • • TEST & MEASUREMENT • • •
How SMEs can strengthen
their supply chains By Jon Wilde, on behalf of sales company specialists KBS Corporate
n the wake of a pandemic, geopolitical tensions and rising inflation, supply chain resilience has become vital for all businesses working in the test and measurement space. According to PwC's global study, supply chains are undergoing the most significant transformation in decades. But for small and medium-sized enterprises, the stakes are even higher. Limited resources and reduced bargaining power often leave SMEs more exposed than large corporations. But resilience needn’t come at the cost of efficiency. With the right mindset, tools a nd partnerships, SMEs can adopt big-business supply chain strategies to thrive in the most unpredictable environments.
I Large corporations weather volatility by
diversifying suppliers, investing in local manufacturing and using sophisticated digital tools for real-time monitoring. While SMEs may not have the budgets for enterprise-grade systems, the core principles behind these strategies can be scaled down. Relying on a single supplier or region exposes businesses to unnecessary risk. SMEs can improve supply chain continuity by engaging multiple suppliers, even if only for critical components. Diversifying not only protects against disruptions but also creates competitive leverage. Already, 81 per cent of respondents say they have implemented dual-sourcing strategies during the past year, according to a McKinsey report. The latest research also shows 73 per cent of companies are now reaping the benefits of this strategy, including improving the organisation of their supply chain.
46 ELECTRICAL ENGINEERING • MAY 2025
Bringing production or sourcing closer to home can dramatically reduce lead times and freight costs, while improving oversight. Although shifting operations is not always feasible, SMEs can explore regional alternatives for high-risk or frequently delayed materials, components or test and measuring equipment. A growing number of UK SMEs are sourcing from Eastern Europe instead of Asia to reduce risk and meet ESG targets.
Many SMEs believe supply chain digitisation is out of reach. But modern SaaS platforms have levelled the playing field with tools which provide SMEs with real-time tracking, automated inventory updates and analytics for a fraction of traditional ERP systems’ costs. This visibility allows small businesses to anticipate bottlenecks and adjust orders.
Last-mile delivery, once seen as a logistics issue, is now a core part of customer experience. According to research, 94 per cent of customers blame the vendor, not the courier, when a delivery goes wrong.
This creates reputational risk for SMEs, especially when outsourcing deliveries. SMEs can partner with third-party logistics providers that offer tech-enabled courier services with branded tracking pages, pooled order efficiencies and flexible scaling. These partners allow SMEs to maintain control over the customer journey without overstretching operational budgets. Supplier relationships are another area where SMEs can punch above their weight. By focusing on strategic, collaborative relationships rather than purely transactional ones, SMEs can gain early
access to scarce resources, negotiate favourable terms and co-develop solutions. Communication, transparency and mutual growth should be at the heart of these partnerships. Perhaps the most important asset for any SME is agility. Unlike large corporations burdened by bureaucracy, SMEs can pivot faster, adopt new technologies quickly and adjust to market signals with less friction.
SMEs represent over 90 per cent of global businesses and account for more than 50 per cent of employment, according to the World Trade Organisation. Their resilience and flexibility is essential to local economies, innovation and job creation, accounting for more than 60-70 per cent of employment worldwide.
Supply chains are key to ensuring the efficiency of test and measurement operations and 2025 onwards brings a clear opportunity to build supply chains that are not only lean but resilient, state-of-the-art and sustainable.
electricalengineeringmagazine.co.uk
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