5 Secrets to Efficient Supply Chain Management

How can you build an efficient supply chain? The way your products move through the supply chain enhances every component of your company. It impacts the way you do business, how much your business costs to run, and the customer’s satisfaction. Yet, many companies struggle with improving the efficiency within the supply chain. Supply chain management solutions can help you with this complex and costly need. In nearly every business environment, it is possible to save money and time by implementing a high-quality supply chain management solution, says David Kiger.

But, how do you do it?

You’ve heard about it and wanted to employ these benefits to your company. Where do you start? More importantly, how can you significantly improve the way your business operates to achieve these goals? These tips can help you to create efficiency within your supply chain management solution.

Once you have your system in place, focus on these areas of potential improvement.

#1: Work to consistently seek new opportunities to optimize

One of the key ways to make this type of system work for you is to implement it throughout the company’s most critical areas and pain points. For example, it should be a part of your demand management, value-based management, virtual integration and talent management. Use it throughout all components of your company to achieve the underlying goal of efficiency. Most importantly, the supply chain management system you use should be able to integrate into all of these areas, creating the ideal one-stop solution for your company’s needs.

By optimizing across various opportunities, you can overcome areas of common challenge such as route mapping, load building, and network design. This helps enhance the way you do business and your overall costs.

#2: Use simulation solutions on a regular basis

Another key area that supply chain management can work to help your company is through simulation. Many businesses do not put enough time and effort into this component of the solution and that is where they miss the mark. Instead, focus on using simulation more routinely. It can be the answer to many of your needs and concerns. However, many companies see simulation as too time-consuming and costly, especially when done outside of the specs of a supply chain solution.

In some cases, simulations do take time, but they are perhaps the most important way to reduce your costs overall. They may seem impractical but are ultimately the ideal way to get the best “work” out of your system.

#3: Invest in education of team members

an educated workforce is extremely important

Many companies don’t put enough time into the training and development of team members who use and benefit from supply chain management tools. It’s important to see the value this solution can offer, though. The bottom line is that supply chains control all of the company’s inventory and management about 70 percent of the cost of goods sold. It also provides the foundation of the revenue generation for the company. It is worth spending money and time in the development of individuals who can enhance and improve this component of the company, David Kiger recommends. Don’t underestimate the value.

#4: Use it to create collaborative relationships

Another way supply chain management directly impacts a company is through collaborative relationship development. It is not always easy to see the value that collaborative relationships provide because it’s hard to create a link between customer and supplier. However, when collaborations are made in any of the relationships within your supply chain, significant improvement and costs savings can happen. The data available to you can help answer the question about how to do this when to do so, where those collaborations are, and how they can benefit your company.

#5: Tailor your solution to meet your specific and ongoing needs

It’s important to view this management tool as an ongoing, ever-changing system. It’s versatile and flexible to meet your needs now and later. That means you can and should put it in place to meet today’s specific areas of focus but allow it to work for you in other areas as they become a challenge. For example, supply chain management solutions work well to meet logistic needs. They can be the best route for you to improve your overall routing. Utilize them as well for other components of your supply chain such as in driver metrics or a multiyear supply chain strategy development.

Fully using your supply chain management solution is essential to getting the most out of it and ensuring it is being as efficient as possible. David Kiger recommends working along with the company to get the very best results possible, and using all components of it.

When it comes to managing supply chain management systems efficiently, it’s essential to learn these key tips and features.

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