6 best ways to improve your supply chain strategyby Jessica Moore Writer
Supply Chain Management is one of the concerning strategies for big companies to increase profit. The Castrol case study has shown the world how efficiently an organization can improve its revenues with a seamless supply chain system.
According to the latest statistics, the cost of logistics in only the US is more than a trillion dollars. That kind of astronomical amount is more than the GDP of most countries. So, here we try to find out the 6 best ways you can improve your supply chain strategy –
1. Automatic Purchasing
It is a time-consuming process to monitor inventory levels all the time. There are advanced ERP systems that are equipped with supply chain functionalities. They enable organizations to automate the purchasing process. The ERP systems can automatically place your orders to the vendors when the inventory level drops below the required level. The most crucial part of a supply chain management system is maintaining consistent inventory levels all the time. If you can automate the purchasing process, that will allow the employees to be free to engage themselves in other critical duties.
2. Increases Transparency
An efficient ERP system helps the supply chain systems to fight fraudulent activities, mistakes, and even wastage of inventory. Reconciling the amount of software with the physical stock count is a major inventory management problem. There are always some products that everyone forgets about or simply gets misplaced. When you have a transparent SCM system, you can put control on the inventory losses and financial losses that otherwise went unexplained.
3. Achieving Data Insight
You can make correct decisions about supply chain strategy with the help of timely information and accurate data. You can access real-time reports anytime you need them from ERP systems. Getting accurate reports at hand's reach all the time will help you to gain better insight into the supply chain system of your company. ERP software enables both management and customers to access purchasing and production data and inventory data instantly. Both parties can use this data for their respective decision-making activities.
4. Manage inventory in real-time
Earlier, the companies used to manage their inventories using long handwritten lists. Gradually they move to use spreadsheets for inventory management. Spreadsheets were effective until their volume kept on increasing and the transactions got more complex. So, the need for advanced ERP software is evident. The modern supply chain management software offers real-time visibility of the inventory levels. So, you will always know the actual inventory level. Moreover, the modern ERP software provides limitless flexibility as opposed to the traditional inventory management systems. Since they have unlimited scalability, it helps increase the business revenues and meet their goals.
5. Track Vendor Performances
You can have a smooth supply chain system only if you have a competent vendor. Therefore, your vendor performance is crucial in determining the success of your supply chain process. The ERP systems enable business owners to track their vendor performance. You can also rate them with the help of a robust metrics system. You need a couple of mouse clicks to review and assess the error rates and the vendor cycle times. This data comes in handy while renegotiating contracts with the vendors.
You can learn more about how to track vendor performances from case studies and papers written by research paper writing service agencies.
6. Raise Cost Awareness
There are so many variables and uncontrollable factors associated with supply chain management. It gets impossible to track all the expenses happening in all the departments. But with a centralized system to pinpoint the financial data, you know exactly where the money went. This consolidates the expenses and streamlines processes.
These are the six ways you can work to improve your supply chain management system. As the Castrol case study suggests, you must also try to adapt the JIT or Just-in-time model for optimized inventory performance.
Supply chain management is one of the modern-day strategies to increase business performance. Take help of the ERP systems to track, assess and work upon improving the business performances. You can focus on the following factors to improve your supply chain strategies. Controlling your supply chain and logistics will help you control wastage, increase profit, and so many other ways.
Mark Ford has been employed as an assignment writer for Assignmenthelp.us for the last ten years. In addition, he loves to hike in his free time.
Created on Dec 27th 2021 23:04. Viewed 141 times.