If something affects your bottom line, shouldn’t you know how to improve it? Your business’s ability to manage your supply chain well is essential to supplier satisfaction, customer satisfaction, and at the end of the day, your bottom line.
If you’re feeling a bit boggled by the sometimes daunting task of supply chain management, here are 5 best practices for supply chain efficiency that will get you rolling literally.
1. Choose Suppliers Wisely
This importance of this step cannot be overstated. Since business logistics start with suppliers, their level of efficiency sets the precedent for how the rest of your process will follow.
Before you commit to a supplier, do your research. Ask around and find a supplier with a well-known reputation for being honest. You want suppliers who are punctual, have excellent packaging, and who maintain the highest standards of quality.
For example, say you’re looking for a supplier of o-rings. Find one with years of experience developing sealing devices. The longer a supplier has proven its reliability and expertise, the less you have to worry.
2. Get Techy
If you’re not up-to-date on the latest supply chain management technologies and software, you’re living beneath your efficiency-potential. Get educated on which Wharehouse Management System will best fit your needs. Nowadays, the simulation model called the supply chain digital twin is necessary.
Managing inventory, keeping track of processes and more can be taken care of right from your laptop or even your phone. With the right tech, your supply chain efficiency will improve rapidly.
3. Continue Employee Education
Of course, you’re going to train employees when they are hired. But to maintain efficiency, you’ve got to make employee education an ongoing priority.
Your employees need to be mentored and coached on the job so they understand the importance of each step in the process. It’s also good for them to understand the impact each step has on the end-product.
That way, if hiccups occur, your employees know how to think critically and solve problems to keep products reaching their end-point.
4. Mitigate Risk
Top-notch supply chain managers do 4 basic things to mitigate risk in their process:
- Determine the likelihood of a problem or risk happening.
- Identify every risk or potential problem in the process.
- Determine the exact, total end-cost of such a problem.
- Rank all risks to determine which are most critical to monitor and look out for.
When it comes to efficient supply chain management, the adage, “preparation precedes power” rings true. The more you know about potential problems–and the more plans you have in place to handle them when they occur–the better prepared you will be to effectively resolve them.
5. Keep Improving
The truth is, you should never be done creating an efficient supply chain. Industry and technology are constantly changing.
To stay on top, always be looking for ways to move faster, provide greater quality, ramp-up customer service, and innovate.
More On Supply Chain Efficiency
The methods for improving your supply chain efficiency are many. Stay up-to-date on all things business and tech-related.
Browse the business portion of our blog for more ideas on how to improve your business as a whole.