5 Keys To Effective Supply Chain Management

Posted by Jason Tindley on 12-Dec-2022 10:30:00


Efficiency underpins all successful supply chains. With modern customers and clients expecting rapid fulfilment – and prepared to shop elsewhere if goods don’t arrive quickly enough – every part of the supply chain needs to be meticulously monitored to ensure that products reach their destination on time.

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At the heart of supply chain management is the principle that every product reaches an end-user when they expect it – On Time In Full. To avoid delays and improve consumer satisfaction, logistics plans need to build-in supply chain efficiency, with these key steps essential for success:

1) Implement A Supply Chain Strategy.

Disruptions in the supply chain can occur suddenly for many reasons, so a well-planned strategy is key to securing greater efficiency in the supply chain. While a supply chain strategy cannot anticipate or plan for all eventualities, it can reduce the number of ad hoc decisions that need to be made, with effective ready-made solutions to tackle foreseeable disruptions.

2) Always Plan For The Unexpected.

As Covid-19 demonstrated, supply chains are vulnerable to unexpected events, but the disruptive threats aren’t limited to pandemic disease. Extreme weather, political upheaval, conflict, and economic chaos possess the ability to cause major disruption to global supply chains. By devising contingencies to cover as many potential disturbances as possible, you can act proactively, not retrospectively, when a problem arises. The challenge frequently is the limited time available to plan and make decisions.

3) Implement The Latest Tech.

The role of technology in strengthening supply chains should not be underestimated and, if your business hasn’t yet embraced these solutions, it should act quickly. Warehouse Management Systems (WMS), for example, can be utilised effectively to automate standard processes, which improves productivity and efficiency, and accelerates decision-making so the business can gain a competitive edge over its rivals.

4) Improve Supply Chain Visibility.

Supply chains work best when all parties have visibility of raw materials and products at every stage. Allowing suppliers to check your real-time inventory, for example, enables them to plan for future demand, so you aren’t left short of vital commodities when they are most needed. When customers can view your inventory, they can make informed purchasing decisions, while your own staff can improve their demand forecasting to ensure that the warehouse isn’t half-empty or overflowing.

5) Learn From Your Errors.

Poor supply chain management can be costly. Therefore, if you’re looking for effective ways to improve your supply chain management, it makes sense to cast a critical eye over your existing operations and identify key weaknesses or mistakes that are costing your business money. This will enable you to implement the correct workarounds and systems to improve efficiency and productivity. An external review can help as sometimes you can’t see the wood for the trees.

Contact LPC For More Information

At LPC we can assist you to improve your supply chain management so, to find out more about our services, please call us today on 01285 640038.

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Image Source: Pexels

Topics: Supply Chain Strategy

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