The management and delivery of shipments have always been a complicated and challenging process.
It is a combination of efficient order processing, packaging, and delivery systems.
Times have changed with the introduction of technology and software in almost every aspect of business and reduced the chances of manual errors that were earlier a prominent part of any supply chain.
It is impressive to see how this software is effectively used by logistics companies for better management and delivery of shipments.
A modern supply chain management software is loaded with features that are useful for your business – offering integration with other business management systems for smoother work management.
Let’s take a deeper look at how to improve supply chain management for profitable business growth.
1. Building customer loyalty
The supply chain directly impacts the business.
One of the major reasons behind the failure of a lot of supply chains is that they are not able to meet customer needs.
Good supply chain management will result in better customer service, delivering the right quantity on time.
A good supply chain will also let the customers know of the exact location of the goods they want.
Sticking to such points improve customer satisfaction, resulting in a long-term and loyal customer base.
2. Reduction in storage costs
A highly efficient supply chain believes in the quick collection and quicker delivery of goods to the customers.
This will reduce the cost of storing goods at the warehouse, minimizing the expenses and maximizing profits.
3. A foundation for the overall economic growth of the business
A highly advanced supply chain can easily exchange multiple goods between businesses and direct customers, quickly and at a low price.
This directly impacts the overall economy of the company and indirectly growing the economy of the whole nation. It is also interesting to note that poor nations have a weak supply chain management infrastructure or none at all.
4. A better supply chain strategy
Most businesses are not very aware of the fact that the association of supply chain and general business strategies go hand-in-hand.
If your business does not focus much on a better supply chain strategy, now is the time to act, even if it means getting help from external supply chain consultants.
A thoughtfully designed supply chain strategy acts as a pillar for achieving success in this highly competitive industry.
A ‘thoughtfully designed’ strategy here means that it should complement your overall business strategy.
5. A better supply chain design
Along with a better supply chain strategy, a better supply chain design is equally important.
This includes everything from warehousing design, tracking of inflow of inventory, processing of orders, and final delivery.
The final product delivery plays a vital role in the success or failure of a business. For the remaining parts, there may not be a predefined process but a process evolves eventually with time.
If your supply chain design has not been under consideration yet, and you want your business to succeed (who doesn’t), it’s time to move to a better supply chain design and optimization.
You will surely come across design elements that need to be improved for better service and greater profits.
6. A better approach towards saving money
Another way of improving the supply chain is by re-calculating the overall costs. Excess inventory may block the cash flow and working capital.
Changes can be made, keeping in mind what is most important towards customer satisfaction – making way for a successful business.
7. A better distribution network
The distribution network is something that affects everything from strategy making to final delivery. Improvement in the distribution network should be your top priority, which is possible with a cluster or holistic approach.
The former approach combines graphs, charts, and other details to keep an eye on the process for a particular company function.
Whereas, the latter reviews the important elements in the distribution network and helps them to work in sync.
8. Going towards a cloud-based approach
Managing different aspects of the supply chain independently is a thing of the past. The need of the hour is to move towards a cloud-based system that unifies tracking of aspects like production, marketing, and delivery.
The data will be stored at a unified platform that improves transparency and tracking of the data for different teams, minimizing the paper-work as well.
9. Strengthening the weakest link
One of the weakest links of a supply chain is ‘Suppliers’.
This is something that is not in direct control but impacts customer satisfaction directly.
Strengthening the relation with suppliers will minimize the factors that lead to supply uncertainty.
Uncertainty in the supply chain will have a negative impact on customer service, eventually hampering the profits. A smooth collaboration between a supply chain and its suppliers is the only way to fight supply bottlenecks and inventory shortages. For consumers, suppliers and supply chain companies are the same. Successful companies have realized this.
10. Offer incentives to better performers
Always offer incentives to employees that work hard to ensure better delivery and customer satisfaction.
It is seen that employees often go out of the usual way to help the customers, providing a better customer experience.
Never let this hard work go unrecognized and offer something or the other in the form of incentives.
11. Real-time inventory monitoring
Traditionally, inventory was managed with the help of excel sheets and manual monitoring.
However, advancements in supply chain software enable real-time management of inventory and automated stock management.
Also, modern Softwares come with unlimited scalability to match the needs of your growing business.
12. Adopt JIT
Just In Time (JIT) is a method to manage inventory that believes in minimal storage of goods and ordering them only when required.
As a result, it will increase your cash-in-hand and minimize storage costs.
13. Ethical procurement of goods
Companies with a reputation have seen revenue-loss and damaged their reputation in recent times because of unethical practices. If yours is a budding business, it is important to partner with correct suppliers and procures goods in an ethical manner.
The involvement of unethical practices from any side will harm your reputation in the market as you are the face for the customer, any wrongdoings (maybe from the supplier’s side) will be perceived as your wrongdoing.
Final Words
For companies to benefit from their supply chain, it is important that the suppliers and the logistics team work together with policies that compliment better transparency and ethical procurement.
In other words, companies can benefit a lot from their supply chain, but most of them still miss out on realizing the importance of supply chain in business growth.
