It is hard to define what is considered an “efficient supply chain”. For each business, the need for inventory, distribution capacity and amount of labour is different. Therefore, the first and probably the largest challenge of running an “efficient supply chain” of a business is to find the level of efficiency; after it is find, the rest is just to ensure that the level is maintained and, also revised from time to time in case there is a need to change.
Having variable products also attract customers, whom like to seek out different options. However it is sometime hard to have a stock with great range of product/services. The cost of inventory would be high for instance, especially when the business needs to hold enough supply of each product.In addition, buying a variaty of product but each with less quantity may cause a business to lose its economic of scales.
Being able to have a combination of efficient supply and variable products to offer to customer, the chance of having a profitable business is high. Although there will be a higher cost in other areas, I believe the loss in profit will be covered by the increase in customers’ spending.