How can you achieve an optimized supply chain?
- Establish an effective supply chain team
- Clearly communicate with your suppliers
- Know your supplier’s suppliers
- Adopt advanced software
- Consider robotic automation
- Invest in a strategic location
There is no doubt that COVID-19 has heavily impacted business environments across the globe. It resulted in burdening hindrances of daily operations. With widespread lockdowns and travel bans, organizations are wondering how to optimize their supply chain.
It’s true that supply management strategies have drastically evolved during the past years. However, the pandemic has pressured business owners to enhance their inventory management and speed up product distribution.
Navigating through these unprecedented times can be challenging. With that being said, we’ve rounded up the best practices to ensure that your supply chains are at peak efficiency. Read on to learn more about this.
Establish An Effective Supply Chain Team
Ideally, your supply chain should be properly staffed. However, there’s a good chance that your current supply chain team’s strategy does not improve processes and align with organizational goals.
Support your supply chain by forming a council of lower-level managers. These leaders should focus on overseeing various business units and creating value for an organized supply chain.
As they come up with a centralized strategy, there will be harmony in implementations. This practice can overcome a major barrier to success known as cross-functional communications as well.
Clearly Communicate With Your Suppliers
One can argue that this is the most essential tip in optimizing supply chains. We all know that clear communication is important in any organization. However, this proves to be more crucial in the midst of the pandemic.
Maintain healthy business relationships by being transparent and clear with your suppliers. This is a two-way street! So make sure you are responsive and proactive to your suppliers as well.
All parties must be open about inventory records and real-time updates. This ensures that there is no confusion about supply and logistics expectations.
Know Your Supplier’s Suppliers
Unless you acquire all materials directly from one supplier, your suppliers will have suppliers as well. It pays to know about their products, costs, materials, and lead times.
As a manufacturer, your demand plays a vital role in the operations of your suppliers. These pieces of information will allow your suppliers to negotiate better deals with their suppliers.
It’s a win-win situation. You can maintain healthy relationships and connect with all parties to negotiate a better volume pricing deal for your organization.
Adopt Advanced Software
Optimized supply chains require all business units to work collaboratively. Thanks to modern developments in technology, there’s plenty of advanced management software available in the market.
Staying on top of available materials in different locations can be challenging. Integrate the right software into your centralized database as it helps in managing your inventories and sales.
You’ll be able to source the right materials and access periodic inventory assessments at any time. Let’s not forget that the software allows you to forecast consumer trends and management demands as well.
In this industry, minimizing waste and optimizing the distribution process can dictate the success of your organization.
Consider Robotic Automation
We are now approaching the Fourth Industrial Revolution. As its building blocks boast numerous advantages, the Philippine economy is preparing to make the shift to remain competitive.
With the introduction of automation and artificial intelligence, the future of supply chains has what it takes to reach all new heights of efficiency.
We simply cannot overlook the opportunities for robotic automation. As complicated as these new techs may seem, they might handle repetitive inventory tasks better than humans.
Thanks to advanced predictive analysis capabilities, robotic automation can identify bottlenecks in supply chains and eliminate inaccuracies. It’s worth considering as it can drastically reduce distribution time.
Invest In A Strategic Location
All business owners know that location is a major driver for organizational success. Industrial parks are some of the most useful investments for your organization.
Setting up your business in an industrial park, such as those by Science Park of the Philippines, means garnering numerous advantages.
Aside from having access to an environment that supports workforce welfare, your business will be favored when it comes to exportation as well. Let’s not forget the availability of complete infrastructure needed for your supply chain.
Knowing how to optimize your supply chain management is a complex process. This is especially difficult to achieve in the midst of the pandemic and new issues arising that hinder daily operations can’t be avoided.
Nonetheless, supply chain optimization should remain a top priority by all organizations. If you want to make sure your business reaches success, remove all the flaws in your process today.