Ultimate Guide on how business are transforming themselves through Supply Chain Optimization
- April 8, 2017
- Posted by: Upinder Singh
- Category: Supply Chain
In the case of the extended enterprise, the supply chain is becoming a more complex ecosystem of the processes, technologies, and the people. Many supply chains which were once comprising of the internal system have significantly expanded because of the propagation of the Internet tools, technologies, and the computer networks during the last few decades. The innovations in the computer tools and techniques have made the collaboration between the distributors, suppliers, and partners stronger which extended well outside four of the physical as well as virtual walls of an enterprise.
The recent advancements in technology which includes the social networks, cloud computing, usage of the Web 2.0 tools, and the spreading popularity of the mobile technologies have presented the further challenges, or one can say opportunities to gain the optimal management of the supply chain.
Manufacturers need to perish or evolve when the enterprise need to optimize the processes, and the navigate the new tools as well as take best practices which are useful for the management of supply chain. Many enterprises are now aware of the trade-offs and problems which are affecting the compound, transparent, and competitive supply chains. An optimized chain should always remain flexible; it should manage the cost and also respond to the minor changes in the demands.
There is no path present that if you follow it, you will be successful in the business. One needs to work hard to create the path to success. However, here are some tips which might prove to be a good guideline for the enterprise to achieve the ideal supply chain.
Consultation for supply chain
The robust supply chain will not just help the industry to respond efficiently and swiftly to the market, economic, and technological disruptions, but it will have a competitive advantage as well. The primary motive of a good supply chain is to reduce the adverse effects that might occur due to the disruptions on the customers, revenues, and cost. There are many supply chain consulting service providers which provide the help to the enterprise to manage and create resilient, high-performing supply chains which will drive profitable and sustained growth even during some dramatic change.
Strategy for reliable supply chain
There are many Supply Chain Optimization Consultant service providers who will help you with their supply chain strategy consulting services. These supply chain expert will analyze the goal of the business, and the consultant will work to develop the strategies which will be suitable for the enterprise to get the superior value and advantage. The processes of the supply chains are horizontal, and it works in the vertical, internal organizations that deliver the importance to the clients. For the enterprise to win the marketplace the technology, people, assets, and process must work flawlessly to meet and exceed the expectations of the customers.
Here are some of the key drivers which help the enterprise to improve the management of supply chain.
- Expansion and Growth of Enterprise globally – A company can grow quickly if the supply chain of the business grows quickly. And with a proper strategy for supply chain optimization, one can develop the strategies to increase supply chain globally.
- Alignment of Market – The Supply chain optimization co align the operations of the supply chain with the values of the customer, which adds a dimension to supply chain of the enterprise which will drive a high level of the client service along with high profitability.
- Relationship with the supplier – The critical factor which contributes to the win of any supply chain are the suppliers. With good supply chain strategy, an enterprise can develop their interactive capabilities with the suppliers that will improve the effectiveness of supply chain and the customer service.
Performance management – With the services of supply chain guru the enterprise will get the data analysis in real-time and the intuitive dashboards of the supply chain which helps the company to evaluate the supply chain’s performance against the predefined benchmarks and KPIs and then take measures for improvements.
Risk Management – With the present situation, the supply chains of a company needs to be flexible and reliable to be able to withstand the geopolitical, economic, and social risks. And the enterprise needs to take care of the emerging threats like the cyber attacks. Supply chain companies in India, as well as other countries, always help the business to identify and eliminate such risks making the risk management of the supply chain as an integral part of the strategy.
Redesigning of Process – The consultants helps the business to redesign the operations of the supply chain to ensure the effective implementation and operationalization of the policies of the supply chain.
When you are considering about the supply chain planning, it is important to think globally. Companies should think about the global opportunities to procure the services and goods, and also while considering the need of the company globally. The manufacturers need to consider the multiple channels and define the inventory’s optimal levels within the stratum of supply chain operation. However, when a company is executing the supply chain, it becomes critical to optimize locally so that the company can maximize the investments in the key resources which are the technology, infrastructure, and assets.
Strengthening collaboration between Retailer and Supplier
Improving the collaboration will help the enterprises to increase the fulfillment rates, reduce inventory, and also improve the product availability at the time of purchase and it ensures good supply chain with improvements in the profitability and margins. The technology at present provides endless opportunities for collaboration. There are data available which the companies can use, and the advances in connectivity and computers give us the power to look for optimality in different areas.
Making use of Mobile Technology
The mobile technology helps in the improvement of the field sales, marketing, and merchandising, and provides the clients with direct services. By sending the information on the item contents, origin, provenance, as well as other specialized information about the manufacturing methodology will enhance the company name and lets the companies get connected with the customers directly.
Supply Chain must be Responsive
A company should use the source data like the POS sales, and information from social media to recognize the latest trends as well as the demand changes quickly and use the supply chain to respond to the changes as quickly. The multi-channel programs modify the expectations from the supply chain planning or forecasting paradigms to get the supply chains which are responsive.
A company must focus on the core competencies to grow the business. Supply chain optimization helps the company in many ways to improve the business condition by improving the flexibility of the organization’s management which helps the company to take care of any sudden change in the demands which may occur due to many factors.