One of the greatest challenges many businesses will face is the creation and management of a working supply chain. As time passes, many companies will continue to use the same old strategies and shipping techniques—and that might be costing your business more than just money. Knowing how to operate a more efficient supply chain can give you a leg up on your competition. Here are some tips for operating a modern supply chain.
When designing your ideal supply chain, it’s best to start with an understanding of what’s involved with running a modern one. To this end, there are three important elements a supply chain in today’s businesses must incorporate for maximum efficiency. Here’s a closer look at the impact technology, constant improvement, and resilience can have:
Using advancing technology to optimize shipping processes can help to speed up the production process. At the same time, it lowers costs. Advances in technology can help automate much of the production process; products can be made much faster. Additionally, payroll costs will be lowered.
In supply chain management, you always want to look for ways to improve upon yourself. Learning efficiency will help remove some production barriers, creating a quicker process. Another example of an improvement in a supply chain is offering additional training to employees.
Your supply chain’s quality of resilience will determine its successes or failures. Resilience refers to the strength of the chain and its ability to recover from incidents. It also refers to how strong your partnerships are with your suppliers and distributors.
The ability to acquire the necessary supplies to produce your product is paramount. Relationships based on trust and respect can be mutually beneficial for suppliers and buyers alike. While it might increase your costs, what you’re receiving will meet your production needs.
For suppliers, they want a buyer who will be consistent with their orders. This allows them to have the necessary product on hand to meet your demands. Additionally, it lets suppliers know you’ll buy from them, ensuring their continued survival.
For buyers, the biggest benefit is knowing the received product’s quality. They can also trust their supply needs will always be met. During times of production shortages, producers must continue to manufacture their products. It’s crucial to always count on your supplier to meet supply requirements.
Having a staff of competent employees familiar with the intricacies of your supply chain can be highly beneficial. The best way to achieve such familiarity is to offer continuing education and career advancement opportunities.
One benefit of offering additional training is employees can fill in some gaps in their knowledge of your supply chain. Having employees cross-train in other departments allows them to fill roles as needed. Additionally, it allows for easier promotions from within the company if the employee is already familiar with the company’s processes.
Employee training also results in employee loyalty. If employees feel like they can develop into their desired career path, they’re less likely to leave the company. So, they get the satisfaction that comes from a more fulfilling position and the company isn’t forced to look outside to fill the job.
For the continued growth and success of a company, a company must be able to stay agile throughout all phases of its operation. This is especially important for operating a modern supply chain. You must be able to adjust at any point of the process if it’ll increase your efficiency.
Staying agile can give you a competitive advantage over other businesses in your market. One way it can do this is by lowering costs. There are many ways companies can find to shave down the cost of production. New methods of production, increased employee efficiency from training, and audit results can all lead to changes being necessary for the process. The ability to comfortably handle those shifts will distinguish you from competitors.
Another advantage for agile companies is the utilization of innovation from their employees. The people who work within the process every day are often the ones who find ways to speed up or automate the process, potentially saving your company money. Being able to quickly incorporate improvements into the supply chain can also set you apart from your rivals.
The final piece of supply chain modernization is the result of evaluations and analysis. Producers should never be afraid to audit any portion of their process. The only reason not to conduct audits is if you already know there are better ways of completing the task you aren’t willing to consider.
Part of the evaluation comes from looking for new ways to streamline the process. Evaluation and streamlining can improve workers’ safety, help to complete processes easier, and produce products using less materials.
Evaluation and analysis can also help you determine your production goals. Looking at sales reports will help you determine how much of your product to produce. Being able to quickly scale production is a hallmark of a modernized supply line.
Whatever the reason you want to update your supply chain, Diversified Transportation Services is here to make the transition as easy as possible. We have a worldwide shipping network designed to get your product into your customers' hands as quickly and cost-efficiently as possible. Contact us today to see how the right 3PL provider can help keep your supply chain one step ahead of the competition.
Whether you're a company looking to improve one facet of your supply chain, your entire supply chain, or simply looking for a transportation and logistics consultation, we can help.