The supply chain within an extended enterprise has slowly become quite a complex ecosystem of processes, people, and technologies.
Innovative ideas have made true collaboration possible among distributors, suppliers, and partners. These have extended well beyond the normal four walls of an enterprise.
Now, the most recent technological advances have presented further challenges and of course opportunities for optimal supply chain management. Up next, we’re going to give you tips for supply chain optimization.
Manufacturers have now been forced to evolve with the times or perish when it comes to the optimization of the processes and navigating the new tools for supply chain management.
Most of them are however acutely aware of the challenges and are working hard towards this.
At any point, an optimized supply chain should always stay lean, respond to instantaneous needs, and manage the costs. It should also be aware of the fluctuations in demand and adjust itself accordingly to avoid wastage.
Tips for Supply Chain Optimization
While there isn’t any single playbook that can ensure 100% success in an incredibly dynamic market, here are a few points you should consider from a manufacturing enterprise.
Always Think Globally But Operate Locally
This is not necessarily a geographical kind of reference, but it is important that you consider thinking strategically when it comes to supply chain or value chain planning. Businesses must always think globally.
When it comes to the procurement of goods and services, consider the global needs of your corporation. As manufacturers, you should also consider multiple channels and then determine the level of inventory.
This is actually quite critical to the carbon footprint levels as it ensures the greening of the supply chain. During the execution of the supply chain, always optimize this sort of thing locally first.
Focus On Core Strengths
Most organizations will try to do way too many things and they never realize that they can actually outsource their repetitive tasks and one-off projects.
Often, it might seem like the organization’s resources are able to do a better job in the short run, but relying upon a specialized third-party will be better value for your time and you shall be able to realize the results in the long-run.
Improve Collaborations
This actually helps organizations to reduce their inventory, and improve on the fulfillment rates. Product availability at the point of purchase actually ensures there is a lean supply chain that improves profitability and margins.
In today’s technology, there are plenty of opportunities to collaborate, and there is also a proliferation of data that is available to be mined and the advances in computing power.
Connectivity actually allows us to be able to test for optimality in all areas by cross-utilizing data with our supply chain.
Use Mobile-Based Technology
This is the technology that shall help to improve sales, marketing, and merchandising. This enables direct service provision to the consumers, through customized local-based services via mobile.
Provision of information such as item contents, provenance, origin, and specialized info on demand concerting local content, sustainability, and manufacturing methodologies also enhances the brand.
Build a Responsive Supply Chain
The utilization of data such as POS sales and social media information helps identify trends early enough to allow your supply chain to be in a position to respond fast to improved service levels, increased sales, and inventory.
This also maximizes the true benefits. The multi-channel programs will change expectations in supply chain planning and forecasting and also build a responsive supply chain.
Conclusion
Great supply chain management is part of being able to weather any storms you experience in the business cycle. You’ll always have enough supply for the current market conditions.
It is vital to have discussions on how to optimize the supply chain as this is the lifeblood of any organization.
