Top 5 Ways To Optimize Your Supply Chain

The current technology progression, along with the extensive practice of Web 2.0 tools and social networks, cloud computing implementation and the omnipresence of mobile technologies has served to present several challenges as well as opportunities for optimal supply chain management. Let’s take a look at the top 5 ways by means of which you can optimize your supply chain:

Plan Globally but Operate Locally

This may prove to be not just a geographic reference but an important factor to implement when planning out strategic supply chain or value chain. Companies have begun to increasingly think with global opportunities in mind for procurement and services in regard to the global demands of the company.

Manufacturers need to reflect on several channels and establish the optimum level of inventory within the supply chain progression. It is also imperative to judge carbon footprint levels and guarantee the ‘greening’ of the supply chain. On the other hand, throughout the implementation of the supply chain, it is essential to optimize locally to make the most of your investments in significant resources, infrastructure and technology.

Concentrate on Key Strengths and Outsource Other Functions

Many corporations attempt to tackle every task across their supply chain. What many don’t realize is that several tasks can be outsourced. This may include determining the optimal distribution system or the payment and audit of freight bills. Despite in-house resources being capable of doing the job, if the simpler tasks can be outsourced, in-house staff can be utilized to work on higher value projects. However, by outsourcing these functions to a specialist third-party provider, you can achieve significant benefits in the long run. This allows you to focus on your key and core competencies that have the higher value returns.

Enhance Teamwork between Manufacturer and Retailer

By improving collaboration between supplier and retailer, accurate demand driven forecasting and efficient inventory management can be established. Naturally, this assists enterprises to boost fulfillment rates and product accessibility at point of purchase and guarantee lean supply chain enhancing margins and productivity. At the moment, businesses can achieve this collaboration using the several new technologies to maximize the abundance of accessible data and connectivity that modern supply chains have.

Employ Mobile Technology

Mobile technology has been shown to augment field sales, merchandizing and marketing, and facilitate direct services to the customer. Delivering useful data, such as provenance, origin, item contents and dedicated information on demand pertaining to sustainability or manufacturing methodology, improves the brand and permits companies to be directly connected with the buyer.

Build a Responsive Supply Chain

Make use of source data including POS sales along with social media information to categorize trends and demand modifications earlier and allow your supply chain to react quickly to augment sales, enhance service levels and reposition inventory to optimize true benefits. Multi-channel programs will revolutionize the prospects of supply chain forecasting/scheduling paradigms for structuring responsive supply chains.

Thanks to advancements in computer networks and internet tools over the past two decades, most supply chains have expanded significantly. These technological innovations have unlocked the door for superior partnerships, connecting partners, distributors, and suppliers.