5 ways to improve your supply chain management
The demand for products will always be prevalent in society because when they run out, more of them are needed, which is why businesses are always on the lookout for better ways to manage their supply chains to increase their efficiency and to ensure the suppliers meet their demands. So, we take a look at 5 ways to improve your supply chain management.
1. Making your supply chain more agile
During the current pandemic ensuring that your business is agile and can adapt to uncertainty is highly important. In order to improve this, organisations can focus on prioritising; specifically their scalability and adaptability. This involves realigning operations and supply chains to prepare them for the unexpected. Ways in which to do this and increase supply chain agility is by rapid testing and adopting drones, blockchains, and the Internet of Things (IOT), all of which are tools and technologies that can build a future-proof supply chain system.
Other ways may include converting to electricity or implementing more carbon-neutral strategies in supply chain initiatives. Because of the current situation, businesses are having to create their supply chain management plans and vision clearly to ensure they can stay on track. Any investments must be made with the aim of supporting the infrastructure of supply chains, and luckily, the pandemic has provided the opportunity to rethink certain strategies and allow companies to progress towards more stable supply chain operations and stronger supply chain management.
Automation and the pace of technology have changed not only the way businesses operate but also nearly every aspect of daily life. From autonomous vehicles to robots in factories, it is one of the biggest advances of the human race yet.
It can also be used in helping to manage supply chain operations and make them more efficient. Companies can use automation such as robotics, artificial intelligence (AI), and automated sorters with “put and pick to light” that use Radio Frequency Identification (RFID) technology. They can also use drone deliveries to speed up their operations and maximise efficiency.
3. Value chain management
In order to optimise business operations and maximise revenues at the same time, organised value chain management is essential. In addition, value chain investment is required to further strengthen supply chain management, as well as creating deeper connections with service providers in the value chain, which will allow companies to become more proactive.
4. Standardisation and transparency
Standardising processes is vital in ensuring effective supply chain management. This can be achieved in several ways, such as through Enterprise Resource Planning, or the adoption of Warehouse Management Systems, Transportation Management Systems, and Ticketing Systems, all of which aim to increase scale, control, and visibility.
Furthermore, ownership can be driven through acquiring a data-driven approach for creating transparency and traceability. This will also lead to better objectives and key results as well as KPIs for managing performance. Doing this will increase a business’s supply chain management efficiency.
5. Dynamic inventory management
Inventory management is a problematic area for many businesses, particularly for smaller ones and startups. However, by making it more dynamic, they can increase their overall efficiency when it comes to managing supply chains. To reduce waste, smart and data-driven Sales and Operations Planning can be implemented. Businesses could also use a Just In Time process or Vendor Managed Inventory to further increase the efficiency of their operations and supply chain management.