10 Tips For Optimizing Supply Chain Management

1. 10 Tips For Optimizing Supply Chain Management Merrchant

2. 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.

3. Tips For Optimizing SCM • Bring in a Leader Who Specializes in Supply Chain Management If you’re 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 you’re 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.

4. 2. Use Spreadsheets and Databases to Keep Track of Suppliers If you’re 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.

5. 3. Use Supply-Chain-Management Software and Web Platforms When you’re 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 company’s supply chain.

6. 4. Consider Reviews and Ratings When Vetting New Suppliers As you begin to expand your supply chain, it’s 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 brand’s 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 you’ve gotten into a system of using a certain carrier and shipping service, this is a relatively easy component to maintain.

7. 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 you’re 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.

8. 8. Have System of Checks and Balances Problems can arise when there’s 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 other’s work to confirm accuracy and validate data. Essentially, you’re less likely to deal with issues when there’s more than one person responsible for maintaining the continuity of the supply chain.

9. 9. Practice Routine Quality Control Inspections When you’ve 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 you’re investing a lot of your company’s 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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