Supply chains are the lifeline for every business today. Whether you are a company into manufacturing and assembling products, a distributor, a wholesaler or a retailer, you are a part of the supply chain. No matter your supply chain position, you need to optimize it to drive business growth in this hyper-competitive business world. That’s why businesses are continually looking for ways to improve their supply chain today.
According to research, 79% of organizations that implement effective supply chain optimization techniques witness significant growth in their revenue compared to those that don’t. Optimizing your supply chain can improve productivity and efficiency while leading to improved revenue and a more extensive customer base for your business.
Before hunting for ways to optimize your supply chain effectively, you need to understand supply chain optimization’s objective.
What’s the Goal of Supply Chain Optimization?
- Efficient planning
- Better inventory control
- Faster shipping and order fulfilment
- Better warehouse management
- Improved customer service
- Improved decision-making
- Accelerated revenue and profit growth
- Reduced costs
- Improved supplier performance
- Enhanced quality
Here are a few best practices of supply chain management for business growth.
Ensure Effective Communication Between Suppliers and Retailers
It is perhaps the most crucial aspect of supply chain optimization. If it is good, transparent communication between the raw material supplier, manufacturer, logistics department and retailer, you get the power to fulfil the demands and avoid any confusion timely.
If more than one supplier is linked to your business, this is even more crucial for your business growth as you’ll require to develop a good relationship with each one.
Leverage Technology for Improved Sales
Today, it is imperative for every business to leverage technology in supply chain optimization for business growth. For retail businesses, mobile technology can be beneficial for direct sales, marketing, and information. Introducing the internet in the supply chain processes allows you to communicate via various channels like email, chat video calls, and group calls.
Further, social media allows businesses and customers to judge trends and be proactive. Businesses, especially those in the retail business, can leverage these technologies to offer location-based services, products and discounts to increase sales.
Go for a Centralized Management Software
Optimizing your supply chain process requires all the facets of the organization to work cohesively as a single unit. Adopt a centralized management solution that integrates different departments of your organization to enable effective collaboration and help them work effectively.
The right software can help your inventory, sales, finance, logistics and distribution systems work together. Such software makes the relevant information available in a centralized database that different departments can easily access, allowing all business processes to be streamlined.
Have a Multi-channel Approach for Demand & Supply?
Use a multi-channel approach to develop a responsive supply chain. Efficient inventory management is crucial for bridging the demand-supply gap. Demands must be communicated to suppliers effectively and quickly to avoid inventory crunch. A multi-channel approach will help you plan and assist with forecasting trends.
Planning is vital for timely order fulfilment – it helps you avoid all manner issues with your logistics chain. Fulfilling urgent orders doesn’t mean you have to pay extra for shipping or air deliveries. However, if you don’t plan, you will have to bear high costs. Plan to ensure efficient inventory management and order fulfilment.
Leverage Analytics Tools
If you plan for supply chain optimization for business growth, you must take the help of analytics tools to improve your supply chain performance. There are numerous tools available to analyze data better to understand your supply chain and customers.
It’s imperative to know what your customers want, how they purchase, and what seasons are right for your products. Make sure you are analyzing your data intelligently before you make critical business decisions.
Supply chain optimization is highly essential to your business’s growth and success, so think seriously about it. Follow the above master tips to enable supply chain optimization for business growth and choose technology, tools and partners wisely. ONPASSIVE provides next-gen solutions for the effective supply chain management.