Increasing globalization and evolving customer expectations are putting pressure on the supply chains. Therefore, you must constantly reinvent the supply chain to manage and mitigate risks.
Implementing the right strategies allows you to access the growth and revenue of the supply chains. Moreover, it lets you exploit newer opportunities, like using truck scales, to improve the supply chain.
7 STRATEGIES TO IMPROVE SUPPLY CHAIN
1. OPTIMIZE COMPANY-OWNED INVENTORY
Check the quantity of the company-owned inventory. Keep exactly what you need; nothing more than that.
The cost of holding and storing inventory is quite high. Inventory holding costs could represent almost 60 percent of an item’s cost that is held in inventory for one year.
Include demand planning and forecasting to optimize company-owned inventory.
Another way to optimize inventory is by using truck scales for effective management. The scales provide accurate measurements which can help you determine the right quantity of inventory to store.
2. IMPROVE DISTRIBUTION NETWORK
Two approaches to improve the distribution network include:
a) Cluster approach: Grouping charts, graphs, and similar documents together. This helps in observing the processes for any specific company function.
b) Holistic approach: This approach involves reviewing the essential components of the distribution network. It also focuses on understanding how the components work in tandem.
3. MAKE A SUPPLY CHAIN COUNCIL
Set up a governing council that offers a clear strategy for functionality and efficiency.
The council’s aim is to give directions and align the supply chain strategy with the company’s core goals.
The council helps in removing barriers within the organization. It also improves the business’s cross-functional communication. It creates opportunities for leaders to provide effective supply chain management in future projects.
4. EMBRACE TECHNOLOGY
Use technology to improve the supply chain. Review all the existing processes that are producing mediocre results. Determine the areas where implementing technology could improve the processes.
The right technology like industrial scales can make the supply chain streamlined, visible and accessible.
5. BUILD HEALTHY SUPPLIER RELATIONSHIPS
Your relationship with the supplier affects the success of the supply chain.
Cultivate and maintain the supplier relationships on an ongoing basis, even after the deals are finalized.
Focus on forming strategies to maintain healthy supplier relationships. Make goals for continuing value, measuring performance and maintaining conflict resolution.
6. REVIEW PROCEDURES REGULARLY
The supply chain council must review policies and procedures to ensure efficiency and compliance.
It also helps avoid bottlenecks in the supply chain, streamline operations and mitigate the risks of theft and fraud.
Regular reviews help in identifying different risk elements and estimating their financial impact.
7. ESTABLISH GREEN INITIATIVES
Minimize the carbon footprint of your supply chain. In fact, supply chain and logistics must become sustainable and socially responsible.
Consider the environmental impact when you choose your suppliers. Have a measurable framework of procedures and policies that promote sustainability.
A FINAL NOTE
The right strategies have the potential to transform your supply chain and increase revenue. If you already have some of these strategies in place, incorporating the remaining can add immense value to the supply chain.
Author Bio: Kevin Hill heads up the marketing efforts at Quality Scales Unlimited. Besides his day job, he loves to write about the different types of scales and their importance in various industries. He also writes about how to care for and get optimized performance from different scales in different situations. He enjoys spending time with family and going on camping trips.