A smooth, efficient supply chain is absolutely essential if you wish to succeed as a manufacturing business. Think about the word ‘chain’: the individual components may be strong, but it only takes one faulty link to destroy the whole thing.
A supply chain isn’t only comprised of a supplier and manufacturer; there are lots of other parts to consider: the delivery transport companies; warehouses and storage facilities; retailers and, of course, your clients and customers.
A successful supply chain – that is, one with maximum profitability at every level – must enhance and balance performance of each level from the very bottom to the very top, and effective management is needed to achieve this.
Here are five best practices to consider when looking to improve your supply chain.
1. Increasing Visibility
Increasing supply chain visibility simply means that improving the transparency of the system so you can easily track the status of your product at every stage – from the initial supplier right through to the consumer’s hand.
Collaborate with each supplier and service provider to create a well-oiled machine that is more like a network than a chain. Be transparent yourself and share your inventory status with everyone else, as this will mean that you’re on the same page and can better anticipate each other’s needs without constant back-and-forths.
2. Making Use Technology
Technology is your friend when it comes to improving your supply chain, so it’s a good idea to invest in both of them.
Technology like GPS trackers and other track-and-trace systems can help improve visibility, robotic technologies can speed up warehouse operations, and RFID tech and smart sensors can streamline your delivery service.
3. Managing Risks
Risk management is a massive part of achieving a smooth supply chain. No venture is ever without its risks, so it’s important to be realistic and identify these.
Clarity is vital to a healthy supply network, so weigh up your risks and potential opportunities, giving equal attention to both.
4. Analyse & Never Stop Growing
Once you’ve got a good supply chain, it can be tempting to rest on your laurels and let things carry on as they are. It’s important to continuously analyse and measure the results of every new system you try. Things can change in a flash in the business world, so you must never get complacent. There is always room for improvement, so stay up to date with the latest strategies and technologies that can help you, and always keep yourself open to change.
5. Using a Global Sourcing Company
A solid supply chain can be greatly improved with the assistance of a global sourcing company like Darian. We are a long-standing company who specialise in sourcing manufacturing supplies and more to our clients across the UK and Germany.
We can help streamline and optimise the performance of an existing supply chain, or, if you’re just starting out in business, we can grow a chain from scratch that maximises your profit and helps you focus on growth
Follow these five tips and you’ll be well on your way to having an efficient and effective system
In place. If you can master supply chain management, your chances of achieving business success will be greatly improved.
Need support streamlining your supply chain? Contact Darian today for expert advice and solutions for all your supply chain queries.