Effective Supply Chain Management: The Do’s and Don’ts
An organization’s supply chain is not something that should be taken lightly. Effective supply chain management should be one of the top priorities of any company, as it can add real value. A good supply chain management will enable savings, improve cash flow, reduce stock levels, and promote efficient working capital, among others.
On the other hand, ineffective supply chain management can lead to significant losses for a business. As a result of poor supply chain management, businesses can experience lower revenue, as well as increased costs and risks.
How then do you ensure that your supply chain works well and that you are doing everything according to how you planned it? Here are some dos and don’ts to follow when managing your supply chain:
The Supply Chain Dos
i. Make sure that everyone in your team understands the process involved in your supply chain. This will help them understand how their work fits the larger picture and motivates them. It will also help them work better together and coordinate with each other to achieve common goals for the organization and the supply chain.
ii. Make the best use of your resources. When you have a fixed budget, you must make sure your assets are allocated in a way that will maximize your resources.
iii. Build on what you have. Sometimes you can transform your system by using what’s already there. Maybe you’re not adding new facilities or equipment, but by using existing assets in a different way you can create a system that’s more efficient and less expensive to maintain than an entirely new one would be.
iv. Partner with suppliers that offer high-quality products
v. Add new products to your supply chain that meet market demands
vi. Invest in data and analytics tools to measure the performance of your supply chain and adjust as needed.
viii. Create a culture that encourages employees to work together, share ideas, and embrace a high level of trust among each other.
ix. Continuously train and educate employees so they remain up-to-date on industry trends and can quickly adapt to changes in the marketplace
The Supply Chain Don’ts
i. Don’t assume that bigger is better. Bigger isn’t always better when it comes to logistics and supply chain management; it may not even be faster or more efficient. Smaller facilities may be easier to fill up to capacity, which makes them more profitable. For instance, if you are transporting goods, smaller trucks with more frequent routes may be preferable to fewer large trucks running infrequently.
ii. Don’t take the lazy route. Sometimes it’s tempting to take the path of least resistance, but it’s important to remember that just because something has always been done a certain way doesn’t mean it is right or can’t be improved upon with new technology and management systems.
iii. Don’t leave communication with suppliers until the last minute. You must communicate with every supplier at least once every week to keep them informed about what is going on so they will not be surprised.
iv. Don’t Overlook the importance of collaboration.
What TGL Can Offer
TGL is a logistics company that offers high-quality and affordable services to companies across the globe. As a logistics company, our value lies in our flexibility to provide clients with cost-effective solutions to meet their specific needs. At TGL, we recognize that each client has different needs and so our experts are always standing by to help you every step of the way. We handle our client’s freight with total transparency. By offering value-added services at affordable prices, we help them to reduce their costs and improve their profit margins.
Get in touch with our Experts to discuss your Logistics requirements.
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