How to Make Your Supply Chain More Efficient!

Make Your Supply Chain More Efficient

As demand increases, your supply chain needs to be working as efficiently as possible.  While you can never predict a sudden surge in demand for your products, you can easily make sure you’re always prepared to start shipping at a faster rate. We’ve outlined below some of the best tactics to make your supply chain more efficient.

1. Upgrade your systems

Investing in your supply chain means maximizing time and productivity. Industrial manufacturing industries can benefit from high-performing single-board computers, allowing employees to incorporate customized artificial intelligence in day-to-day operations. 

Furthermore, applying personalized technologies to your existing systems might present a cost-effective alternative to upgrading your entire fleet.  Using automation to your advantage is one way to meet the demands of the modern, fast-paced business world. 

2. Consider your suppliers

Evaluating the reliability of the suppliers is crucial when you need to work on a deadline. An effective supplier should be efficient, reliable, and easy to communicate with. 

If your current supplier regularly falls short on your purchase orders, delivers late, or fails to respond to your messages, it might be time to make a change. Regardless of your industry, it’s always important to know how to maintain strong relations with your suppliers.

3. Review your distribution network

From your loading facilities to the type of vehicles you use in the process, reviewing the core aspects of your distribution network should reveal any functional weaknesses. There are two ways to undertake a review:

  • With a cluster approach, you’ll observe the process on a day-to-day basis. By grouping together charts, graphs, and other forms of visual data with written documents, you’ll be able to determine how effective the network is.
  • Or, using a holistic approach, you could reflect on the network as a whole entity by considering its individual, integral parts and how they interconnect.

With the help of modern technologies, it’s not difficult or overly expensive to determine whether making changes could benefit your business. You could also adopt a similar approach across other procedures within the company.

4. Sharpen your communications 

Building strong relationships makes it easier to give and receive constructive feedback. The entire delivery process can be facilitated by this working relationship, so it’s crucial to maintain it.

With high quality email services available from under $1 per month, we’d recommend doing some research on the best email hosting providers for your business in 2022 and beyond. They’re a simple way to receive an efficient, reliable service, and you’ll also be able to work with a custom domain that’s easy to use and set up.

5. Manage your inventory

Inventory is a critical area overlooked by many businesses. Data-driven optimization can increase efficiency both for start-ups and established businesses alike, so it’s worth investing in the right tools regardless of the size of your company. 

You should aim to make your inventory management consistently more dynamic by implementing new systems, especially those aimed at waste reduction.

Keep only what you need and nothing more. Once you’ve acquired goods, materials, or products, you could incur surprisingly high inventory costs. Instead of allowing stock to build up, concentrate on planning and forecasting to optimize your inventory.

6. Value chain management

It’s crucial to invest in your team to keep things organized. Not only is this required to support the overall management of your supply chain, but it will also allow you to maximize revenue and optimize business operations simultaneously. 

We’d suggest setting up a governing council to propose, evaluate, and implement a clear strategy for optimum functionality. This new council should aim to give helpful, productive directions and align the overall supply strategy with the core goals of your company.

Plus, you might see some unexpected benefits after setting up the council. Along with improving the communication across multiple teams in the company, it should present opportunities and ideas to use for future projects.

7. Set up green initiatives

Lastly, there’s never been a better time to launch new initiatives for your supply chain with an eco-friendly focus. You should try to minimize your corporate carbon footprint by seriously considering the environmental impact of where, when, and how you choose to work with suppliers.

Establish a realistic, measurable framework of policies and company protocols that promote sustainability – from the design and development of your product to the very moment it arrives with your customer.

Key takeaways

If you’re unsatisfied in any way with the performance of your supply chain, don’t give up.

Try to focus on finding more reliable service and logistics providers and efficient suppliers, too. Facilitating communications processes can go a long way towards better costs overall. 

Successful supply chain management is a continuous process, so you’ll need to keep your colleagues motivated as best as you can to make your Supply Chain more efficient.

Make your Supply Chain more efficient article and permission to publish here provided by Chiara Romele. Originally written for Supply Chain Game Changer and published on September 23, 2022.