For the past several months, the term “supply chain” has been the subject of a number of news stories. For instance, when stores ran out of toilet paper at the start of the pandemic in the United States, articles questioned whether the supply chain was in jeopardy or if other issues were at stake.
For a business owner like yourself, you are probably well aware of the importance of keeping tabs on your supply chain. Rather than sitting on your laurels, you continually make adjustments to it, which in turn allows you to manage risks better.
While this is a solid approach, there are other tips to keep in mind to help improve your supply chain management process.
Company owners who have been using cumbersome spreadsheets to provide information to your workforce and clients may want to rethink their approach. Unleashed Software advises getting rid of this antiquated approach in lieu of technology like software and other programs. This will allow you to share vital data in a much quicker and more transparent way, which will then lead to a more efficient supply chain.
Work With the Most Reliable Providers Possible
As much as possible, choose providers that are immensely reliable and always deliver on time. Granted, you may find a vendor that offers rock-bottom prices, but you might end up dealing with late shipments or merchandise that is of questionable quality. This advice holds true from the largest pieces you use in your company down to the smallest. For instance, if you use o-rings in your production process, be sure to choose a reliable o-ring provider that will help to improve your supply chain management by offering custom products and solutions.
Improve Control of Your Expenses
Incorrect supplies can throw a serious wrench into even the best supply chain plan. As EDUCBA notes, rather than merely correcting the current order, look further to determine who, where and/or when the error was made; this will prevent this issues from happening again. You might find that an employee who is placing the order needs better training in the software program, or that there is an automated ordering process that is causing unneeded stock to come in and thus must be updated.
Inventory Is Better Than Low Storage Costs
In an effort to save on storage costs, some business owners will deliberately keep their stock on the low side. Even if your production is pretty predictable, this tactic may come back to haunt you if a key delivery is suddenly late. Strive to achieve a solid balance between keeping minimal stock on hand and always having enough to handle any and all orders that come in — even when a product delivery is late. In the long run, keeping your customers happy and having a steady stream of revenue will be much better than any money you save from having a small inventory and low storage costs.
Solid Supply Chain Management Equals a Competitive Company
For businesses of any size to be successful, they must have an efficient process in place to manage the supply chain. Instead of being complacent about your current plan, even if it seems to be working well, it is vital to continually make changes and improvements to it. By going with software instead of paper spreadsheets, choosing the best possible vendors, fixing costly errors immediately and keeping enough products on hand at all times, your company should continue to flourish and prosper.