A supply chain that is not streamlined and efficient will only burden a company's economy and could cause its decline. For this reason, the supply chain is paramount to the economic activity and control of logistics operations and must be worked on applying the best strategies and optimizing it as any key element of a company.
In recent years, the general public has become more aware of the role of an efficient supply chain because of the many challenges it has faced: high logistics costs, staff shortages, stock-outs, etc. In the face of uncertainty and a changing landscape, the supply chain must adapt and streamline its operations to continue to provide good service.
In this section, we will show you ways to streamline the supply chain to start implementing in your strategy:
Outsourcing logistics services
Although it is true that logistics operations are better controlled if these resources are internal, in many cases it is a high cost. Therefore, it is best to leave logistics management to other companies and professionals who are experts in the field, i.e., to outsource.
This decision involves a rigorous analysis of the logistics companies and logistics operators with which you want to collaborate. It is also essential to have a strategy of negotiations and agreements with suppliers to obtain their services at the best price and with a good lasting relationship.
Pues la Improving relationships between logistics partners is one of the most important strategies for mitigating risk, according to a study by Deloitte Insights. It is certainly one of the "easiest" ways to streamline the supply chain, which is why most companies have their logistics services outsourced.
Automating the supply chain
Traditional supply chain management methods and technology usually do not keep pace with the changes in the industry and in demand and supply, which usually require streamlining the supply chain. By automating all or a large part of the supply chain, you can greatly speed up and streamline processes and minimize human error.
There are several ways to automate the supply chain, and it is not only about robotization, but also about applying technological tools that help us in the management and control of one part, such as the TMS. This solution makes it possible to manage and monitor decentralized operations and verify that both parties, whether they are customers or suppliers, are complying. In addition, an updated tool has more flexibility with more customized orders and their respective restrictions.
Supply chain management is usually slowed down by delays and unnecessary tasks if good practices are not being applied. Process standardization is there to simplify and solve the most common problems within the different parts of the chain.
Through standardization, unnecessary tasks and delays within the supply chain can be minimized and efficiently streamlined. However, it also requires that personnel be kept up to date with training and education on the new strategies and operations that are being implemented.
Undoubtedly, demand planning is an indispensable action to meet customer demand and avoid stock-outs. But, just as strategies are established in other departments by segmenting by ideal customers with different demographics and geographic locations, the supply chain must be segmented as well.
This is because the supply chain can be segmented by demographics, products, geographic locations, among others. For example, with an analysis of demand metrics, you can find out what type of product is most popular in a particular geographic area and focus your strategy on reorganizing the distribution of stock by these most sought-after areas.
Improving inventory, warehouse and transportation management
There are several ways to implement improvements to logistics processes when necessary, such as hiring experts and consultants, infrastructure upgrades, planning, among others. Today there are logistics tools and solutions tailored to the size and sector of a company that streamline and improve the performance of a part of the supply chain, such as inventory, warehousing and transportation.
First, identify the supply chain needs such as the type of transportation and analyze the types of logistics software that address these requirements. Then, it should be implemented along with the company's existing ERP integrations and start planning, allocating, communicating and tracking using best practices and with the help of that logistics solution.
It is worth noting that these types of solutions usually come with traceability, monitoring and analysis tools, thus providing transparency in observing performance and further improving supply chain agility.
The role of the supply chain for a company is vital to its economic activity and progress. In an environment where there is more and more digitization and professionalization in the supply chain to meet the current needs of the industry, there are now more resources to streamline the supply chain while respecting the constraints or characteristics that your industry has.
At Hedyla we offer logistics solutions that can be easily integrated and applied to other ERP systems already in use, with seamless data sharing between platforms.
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