A network of companies? Yes, that’s the Supply chain, a new imperative for the success of a business where all functions must be involved. All the Supply chain Managers should dedicate their time to rework their efficiency strategies, even the most adept ones. Their company grows and the business climate continues to evolve. Nowadays, the expectations of customers are sky-high which means that each element of the supply chain must be thoroughly assessed and monitored.
Supply chain management involves the implementation of cross-functional relationships between suppliers and key customers in the network.“Supply chain” refers to your suppliers and their suppliers, and your customers and their customers.
A CEO priority
Achieving supply-chain excellence is getting harder. Manufacturing and distribution networks have become more complex over the last years. But it’s essential that the operation is successful in order to generate revenues and profitability.
Many large companies have made strategic investments in supply chain management to create efficient and effective organizations that can overcome cross-functional silos. These companies have surpassed the overall maturity level of their sectors. Many have even revolutionized them, including Amazon in the field of e-commerce.
5 key elements to manage your supply chain better
1. Get rid of spreadsheets
Gain data-insights. Critical decision-making for your strategy depends on accurate data. You need those valuable insights, real-time reports, at all time. Due to traditional inventory management, too many companies continue to use slow and unreliable spreadsheets.
Modern ERP software provides inventory capabilities that provide real-time visibility of accurate inventory levels. In addition, traditional inventory management software has limited scalability, while modern ERP software offers unlimited flexibility that matches the growth and unique needs of your business.
2. Improve your distribution network
Your company’s distribution network is the operational hub around which your supply chain management system is built. Distribution affects a lot of aspects in your company, including sales strategy and tracking deliveries. Improving the distribution network should be your main objective, which you can do with a holistic approach.
For example, examine your purchase software and see how it works with the delivery system. Does it communicate well with the warehouse manager and the production foreman? If this isn’t the case, identify the areas in which the changes are to be integrated.
3. Monitor cash flow
Cash flow monitoring is a fundamental tool used by various organizations to improve the management of suppliers. Simply said, companies need to clearly understand how to pay suppliers and logistics companies. How often should they pay? Which payment tools? Etc.
4. Increase visibility and information sharing
Supply chain visibility is key to your strategy. But what is it? It’s the ability to track each component of your product as it moves its way from the suppliers’ hands to yours.
Make your logistics processes more transparent for your staff and customers. Share the latest information with current technology solutions. You can also take advantage of the big data analysis available to you, regularly measure supply chain metrics, and engage employees in the search for system inefficiencies. By informing your staff and customers, you create opportunities for innovation.
5. Think globally, act locally
Companies must think in terms of global opportunities for the procurement of goods and/or services. Within the supply chain process, manufacturers should consider multiple channels and determine the optimal levels of inventory. Considering carbon footprint levels and ensure the greening of the supply chain is also an essential part of the process. However, it’s important to optimize locally in order to maximize your investments in your resources: infrastructure, assets and technology.
We hope we succeed in giving you more insights on this subject. If you have any questions feel free to reach our Shippr Team at “email@example.com”. You can also connect with the team on Facebook, Instagram, LinkedIn!
*Article initially published on Medium.com 20/06/2019