About 6% of companies have full visibility on their supply chain while 69% lack total visibility. It’s risky going on with business without having full control over your supply chain management process.
Slight hiccups in your supply chain network can have a huge impact on the delivery of your products. To reap maxim profits, you need to pay attention to each node in the network. Supply chain optimization involves solving issues as they arise.
You can only do so if you fully understand the working of each sector. This article will highlight five smart ways to improve the supply chain management process.
1. Check Your Orders
Order fulfillment is a key aspect of your supply chain network. You put your entire supply chain network at risk when you fail to put much thought into your pricing and order system.
It can be quite messy when your clients keep on getting the wrong orders. Therefore, to improve your supply chain, start by getting the orders right.
Have a system that ensures delivery of the right package to the client who asked for it.
2. Manage Inventory
A well-managed inventory is the root of every successful supply chain network. There is no need to keep more than you need. Deadstock creates the illusion that you have products when in reality you don’t.
When you use an inventory management system, you can identify products that are no longer in demand. It’s advisable to sell them at throw-away prices to clear the stock. Then, you can replace them with highly sought commodities.
3. Distribution Optimization
To have an efficient supply chain strategy, you need to focus on your distribution process. Most customers value timely delivery and so should you.
You ought to have tracking devices on your fleet system. They will help you track products till they reach the client. In case of an issue, you can resolve the problem early and still make the delivery on time.
4. Have a Supply Chain Manager
Most business owners take it upon themselves to oversee the supply chain network. But it can be hard to effectively deal with issues because you’re handling other management needs.
It’s advisable to hire someone or put a council in charge of the supply chain. They’ll deal with eliminating internal barriers to create an efficient system.
Besides, they can come up with new strategies from time to time to optimize processes. For instance, they can streamline the communication process among teams involved in the supply chain.
5. Use Software
In the information age, it’s wise to embrace technology in business. Smart business owners use IFS enterprise resource planning system to manage their supply chain.
It’s wise to review all the processes with average results. This way, you’ll identify where you need the help of software. You should have an application to manage the inventory and fleet system.
Supply Chain Management Process
You must come up with an efficient supply chain strategy to improve the entire process. The best way to go about is to pay attention to each sector of the supply chain before attending to it as a whole.
Apply the above tips to improve your supply chain management process. Stay on this website for more insightful articles.