I recently found an article about supply chain concerns that, even though it was published a year ago, has a lot of lessons that apply to businesses as we move further into this exciting New Year. A British research firm asked 300 business leaders what their biggest supply chain concerns are, and these are what they came up with, starting with the most talked about.
All of these concerns can be resolved with a good supply chain management solution. I’ll show you what I mean:
1. Inventory Management and Planning
Inventory Management and Planning is much easier if you have detailed data and reports compiled from your sales and orders over a certain period of time.
2. Demand Management and Forecasting
Demand Management and Forecasting works much the same way. If you can see which locations sell the most products, you can plan ahead for seasonal trends and other changes in demand.
3. Supply Chain Network Optimization
A big part of Supply Chain Network Optimization happens when you keep track of which suppliers are the most dependable and which ones offer the best rates.
4. Supply Chain Segmentation
It’s rare to find a company that has just one supply chain. Supply Chain Segmentation is the process of separating your supply chains and recognizing that each one has distinct features. That way you can compare them and see which ones perform better than others.
5. Training and Development
Many organizations worry about the time it will take to train their staff on how to use new software and hardware, as well as when new features will be released. Some inventory management software providers offer extensive Training and Development programs, technical support, and year-round software updates in response to customer requests.
6. Supply Chain Risk Management
Sometimes supply chains break down. A shipment could get misplaced or a delivery truck could break down. By using inventory tracking software, you can be aware of these issues early on and engage in Supply Chain Risk Management quickly.
7. Sales and Operations Planning
This goes back to No. 2. If you know how many products are sold at each location, you can plan ahead for sales trends and optimize your Sales and Operations Planning.
8. Performance Improvements in Warehouses
A great thing about warehouse management software is it helps you maximize efficiency in your warehouse(s). Your most popular products can be placed close to the entrance, and products that are often ordered together can be stored next to each other. Plus, using barcodes and scanners enables your warehouse workers to get more done in a shorter amount of time. These and many other Performance Improvements in Warehouses are available with the right tools.
9. Material Purchase Price Reductions
Keeping a close eye on your suppliers allows you to shop around for the best deal on all of your materials and even find Material Purchase Price Reductions.
10. Green Supply Chains
By using supply chain management software, you can have more Green Supply Chains and cut down on the amount of products and resources you purchase that go to waste. You can also improve your supply chains to make sure you’re not placing too many orders, leading to unnecessary fuel usage.