How to Improve Your Supply Chain Performance

Oct 22, 2020 4:21 PM ET

Oct 22, 2020 12:21 PM ET
iCrowd Newswire – Oct 22, 2020

For a business to be successful, everything needs to run smoothly, from the acquisition of raw materials to delivering the finished products to your customers at the earliest time. Here are a few ways to improve your supply chain performance.

Improve communications between departments

Whether you’re running a small business or a larger operation, one of the main problems that negatively affects supply chain performance is a lack of proper communication. For instance, your production manager needs to run daily assessments of the raw materials and supplies they might need.

This person must make sure that information passes on to the acquisition department in a timely manner.  At the same time, the people in charge of your storage facilities need to be up to speed and know when to expect a delivery.

To help everyone stay up to date, implement a system of sharing information across the various departments. Tell the relevant individuals how they need to input information and have the other departments concerned acknowledge receiving that information.

Track the inventory

This one ties in with the communication system you need to set up. If you want everything to run well, implement a seamless supplies and products flow.

You don’t want to overstock supplies in the storage units, just as you don’t want finished goods that are time-sensitive to expire while waiting to be shipped. This way, you avoid the risk of your goods being susceptible to damage, decay, or theft.

Streamline your distribution strategy

Your distribution manager needs to always be aware of when to expect the next batch of finished products. Make sure the distribution center is ready to deliver the goods as soon as possible.

This way, you avoid your products sitting idle and taking up space. Plus, you improve customer satisfaction by delivering them within a short time.

Ask an expert

When you’ve been running a business for a significant amount of time, you get used to how things work. It can be easy to miss an obvious or more complex problem.

To improve your company’s efficiency, it’s often best to hire outside experts like Supply Velocity that are trained to spot any inconsistencies in your supply chain. The professionals will perform an initial assessment of how things are going in your company, looking at supplies and finished goods inventories, facilities layout, and strategies (sales and distribution).

Once they make their assessment, they will formulate a plan to improve the supply chain performance and help you implement it. This process will also avoid creating any conflicts between your department managers over who has a better idea to increase efficiency as the concept is coming from an outside provider, not in-house.

Monitor your cash flow carefully

Money is often at the root of many problems in a company. You need a cash flow strategy that takes all problems into account so there’s never a monetary problem.

At the same time, keep up with the fastest payment methods available. Invest in modern payment technology, like POS machines and electronic pads, for your warehouse staff. Consider using digital payments too.

Final words

The key elements to improve supply chain performance include getting expert advice and encouraging efficient communication between departments. Also, keep an eye on the inventory and your distribution strategy, as well as optimizing cash flow.