10 Tips For Optimizing Supply Chain Management

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10 Tips For Optimizing Supply Chain Management

• Merrchant

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What is Supply Change Management

• Supply chain management is the management of the
  flow of goods and services and includes all
  processes that transform raw materials into final
  products. It involves the active streamlining of
  a business's supply-side activities to maximize
  customer value and gain a competitive advantage
  in the marketplace. SCM represents an effort by
  suppliers to develop and implement supply chains
  that are as efficient and economical as possible.

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Tips For Optimizing SCM

• Bring in a Leader Who Specializes in Supply Chain
  Management
• If youre running a small business or startup,
  you can probably handle the initial duties that
  come with creating and managing a supply chain in
  the beginning. However, if your company is
  processing a high volume of transactions and
  youre at the stage when it has become
  impractical for you to handle everything
  yourself, you might want to consider hiring a
  manager who has a degree in supply chain
  management.

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• 2. Use Spreadsheets and Databases to Keep Track
  of Suppliers
• If youre a retail company that regularly orders
  and stocks thousands of products, keeping track
  of all of your suppliers and making sure
  everything is in stock can become incredibly
  difficult without an organized system in place.
  The most basic and straightforward way for most
  people to get started is to simply create a
  spreadsheet with all of the necessary fields.

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• 3. Use Supply-Chain-Management Software and Web
  Platforms
• When youre ready to go beyond keeping
  spreadsheets, or you need a more user-friendly
  approach, try using a supply-chain-management
  software (SCMS) to streamline the process of
  recording and retrieving all data related to your
  companys supply chain.

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• 4. Consider Reviews and Ratings When Vetting New
  Suppliers
• As you begin to expand your supply chain, its
  imperative that you avoid doing business with
  questionable suppliers and manufacturers. Making
  this mistake can lead to costly mistakes related
  to poor product quality, slow shipping times,
  unfulfilled orders, and other mishaps that can
  damage your brands reputation and hinder the
  expansion of your company.
• 5. Use Optimal Shipping Services
• Ensuring reliable shipping is another aspect of
  supply chain management that requires attention
  to detail. Fortunately, once youve gotten into a
  system of using a certain carrier and shipping
  service, this is a relatively easy component to
  maintain.

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• 6. Create a Contingency Plan
• If something goes wrong with your supply chain,
  you need to be ready to respond with a backup
  plan immediately. This means having alternate
  suppliers on standby so that you can have orders
  fulfilled when your main supplier is out of stock
  or experiencing other issues.
• 7. Keep a Surplus Reserve Stock for Certain Items
• Ideally, you should never be in a situation where
  youre unable to fulfill orders for your hottest
  selling items. Of course, staying in stock all
  the time is easier said than done. Plus, some
  might argue that the goal of doing business is to
  sell out of your inventory.

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• 8. Have System of Checks and Balances
• Problems can arise when theres a lack of
  accountability in your supply chain. The easiest
  way to create a system of checks balances is to
  have managerial employees regularly double-check
  each others work to confirm accuracy and
  validate data. Essentially, youre less likely to
  deal with issues when theres more than one
  person responsible for maintaining the continuity
  of the supply chain.

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• 9. Practice Routine Quality Control Inspections
• When youve been dealing with a supplier for a
  while, it can be easy to become complacent in
  your arrangement and let your guard down. When
  that happens, product quality can start to suffer
  without you taking notice until a dissatisfied
  customer or client lodges a complaint.
• 10. Consider Using Financing to Fund Inventory
  Orders
• If you find that youre investing a lot of your
  companys available capital into keeping the
  supply chain running, you might benefit from
  using invoice factoring and other inventory
  financing methods to fulfill orders without
  dipping into your own cash flow.

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Thank You
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