The key to meeting the needs of shareholders and customers is to optimally integrate all the areas of supply chain management. A specific strategy that focuses on all the areas allows the decision makers to foresee the problems and create a contingency plan to tackle the emergency situations. This increases the profit and makes the whole process of supply chain management more efficient. If you find this idea a bit difficult to implement; then try to find an experienced partner to manage and implement supply chain solutions that would cause your business to become successful.
Focus on these areas
The companies can view and tailor their mechanisms within the supply chain with the help of an end to end supply chain management strategy. Keep the sharehosertlders happy and deliver the products to the customers on time. Some areas that can really benefit from a better supply chain management strategy are:
Usually there is confusion regarding the matters like availability of the stock, assets from returns that can be used and the delivery that is on its way. Companies have to order extra stock to cover anticipated requests as part of the contingency approach and deliver the goods to the customers on time. In order to efficiently meet the demands- keep the track of availability of goods at all stages, pipeline, deliveries and returns.
Excess and Obsolescence
There are some extra products in the stock that are not requested and have a tendency to become obsolete such as the IT products. If a product sits in the pipeline for long period of time, then its value is decreased causing less return for the company. It is better to reduce the amount of unnecessary products and use the cash in other areas to avoid unnecessary expenditure.
Management of Asset and Returns
Concentrate on the way returns are processed and managed in the supply chain worldwide. Look for the parts that can be reused for better management of resources. The end process gets short and assets or cash can be returned to a company by reorganizing this process. It helps to recover the loss.
Companies will know exactly which products they are missing and which ones are delivered if they have gained exposure. The freight can be managed for complete and error free shipments with better practices including the shipment of extra products. Reducing the demand for extra products utilizing the knowledge of assets will eventually decrease the shipping costs.
The products need to be assembled to a particular place before shipment. Gathering all the relevant data for seeking out the convenient locations will cut costs and reduce the transport and freight management time with proactive planning and implementation.
Best practices for increasing supply chain presence
It is imperative to choose a decision maker in a supply chain management who will be accountable for revenue and profit of the company. In order to achieve enhanced platform management, rationalization of stock keeping unit and simplification of the supply chain, you have to invest in the internal processes. Development of strong partnerships results in enhanced communication and gain. Any major issues are easily resolved and prompt adjustments are made. If you are managing an international supply chain, try to partner up with the cooperative members who will guide you about the local practices, customs and rules of the shipment. A keen observance of factors that cause the delay in deliveries is crucial to address the issues.
Enhanced visibility leads to improvement
A company can always use the data from a reliable end to end supply chain management process to make adjustments that are necessary for the enhanced efficiency. Prior knowledge of the issues allows the company to resolve them promptly and alter the process of supply chain to prevent the occurrence of similar concerns in future. Additional suppliers can be added to the chain based on the price, availability and local conditions. Reinforce the communication and make adjustment plans.
These changes can make the company more competitive and quickly adjust to the changing trends. The loyal customer base and better operational procedures are guaranteed for the companies working in partnership with the teams and suppliers. With so many supply chain companies emerging, there is an ever increased need for sustainable growth and quick response to multiple points of supply chain at a time.
Leverage the expertise of others
It is better to invest in order to gain visibility and to enhance your presence in the global supply chain market. Make that investment in a partnership with Third Party Logistics Company. Their resources, team and experience will function as an extension to the existing infrastructure of the company. Work together in order to develop the swiftness to shift the duties and readily address concerns, monitor the issues, enhance communication and utilize the best practices with the intention of future success in mind.
You need to make sure that you actually have the items that your warehousing management system or resource planning system report you about. The goal should be hundred percent inventory accuracy and the only way to achieve that is by conducting systematic and regular physical inventories and cycle counts.
Without the 100% accuracy of inventory you may not be able to ship the products to the consumers on time. Lack of inventory management means that a company is buying products it already has as well as the items that are not even needed.
Implement a cycle count program and ensure that you are counting sheet to floor and floor to sheet to pressure test the accuracy of your inventory.
Customer demand planning
Your customer might send you the forecasts. Use this information as the starting point. You can do much more in an active demand plan setting. You can utilize the market analysis, history, competitive landscape, seasonality and other factors to gain insight about the customer needs better than they do. Robust demand planning aids in minimizing the advance fees and miscellaneous logistics costs.
These are some of the basic tips for leveling up your supply chain management. The more visibility and control you gain, the better it gets.