Why is it important to measure the success or failure of your business operations? Because you can’t solve problems you don’t know about and you can’t duplicate your successes if you don’t see them.
That’s the main lesson I gleaned from the article “If You Don’t Measure, You Can’t Measure Up.” According to that article, only 45 percent of companies that say they have top-rated supply chain management actually take the time to closely check their supply chains on a frequent basis. Most of the top performers at least put forth some effort to track their supply chains, though they could do better.
What is a supply chain and why does it matter? Your supply chain is made up of all the companies you depend on to give you the parts, products and materials you require to manufacture and sell your own products. Businesses often fail because they don’t take the time to plan ahead for supply disruptions or other problems that lead to lost customers.
Companies that dedicate themselves to measuring their supply chains’ performance can see approaching problems more clearly and make it through hard times with greater success.
“By regularly checking up on the fiscal health of customers and supply chain partners, when negative trends appear, you might consider revising collection behavior to minimize outstanding sales and limit customer exposure,” the author of the article says. There are many good ways to respond to problems, but you have to know about those problems first.
Start using manufacturing inventory software to manage your relationships with your suppliers. Fishbowl Manufacturing gives you the tools to monitor your inventory levels, keep them in equilibrium, make your warehouse and manufacturing operations more efficient, and cut costs.
The more information you have, the better. Fishbowl Manufacturing helps you make sense of all that information so you can put it to good use.