5 Things to Improve Your Supply Chain Management
Over 12.5 billion tons of goods were shipped domestically across the United States in 2020. This represents a major increase in the total tonnage of goods shipped. This trend shows no signs of slowing down soon.
To move this massive amount of freight, businesses rely on implementing supply chain management strategies. If you own a business, managing a supply chain is vital to your interests.
Small businesses may only need a single supply chain manager. Larger firms on the other hand may require an entire supply chain management team. Regardless of your situation, check out these 5 supply chain management tips.
1. Have the Right Equipment
If your trucks are dated and faulty a single breakdown can throw a huge monkey wrench in your supply chain. Make sure to buy the best equipment that won’t break down on you during a critical moment.
This also means having the right type of equipment for the job. Rail and truck freight will do little for you if you are shipping internationally beyond North America. Make sure you use air and sea freight as needed to remedy this.
2. Hire a Strategic Team
If you are a small operation, you may be out of your league when it comes to managing your supply chain. You may need to call in outside consultants to help optimize your supply chain and overall strategic planning processes.
3. Craft a Supply Chain Management Strategy
Without a plan, your supply chain won’t have anything to guide its action. It is paramount that you craft a supply chain management strategy to optimize your supply chain.
Keep your strategy flexible enough to adapt to change, but rigid enough to provide accountability. That way your supply chain will be resilient and be able to evolve with your growing business.
4. Keep Your Supply Chain in Balance
The supply chain consists of a few major parts. These include your plan, sources, manufacturers, mechanisms of delivery, and mechanisms of returns. All of these parts need to function in symbiosis.
If they get out of balance your supply chain’s efficiency will suffer. For instance, if you source too many raw materials to manufacture, you will be left with waste. Keep all parts of your supply chain in balance with one another.
5. Review Your Supply Chain Management
You need to constantly reassess the successes and failures of your supply chain management. This means finding out aspects of your strategies that work to increase supply chain efficiencies.
It also means identifying areas where your supply chain management strategy is failing and implementing workable solutions to solve these failures. Taking a hard look at your supply chain over time may not be fun, but it is necessary.
Every Link in Your Chain Matters
Every link in your supply chain matters and it is up to you to make sure they all function in harmony. You can only do this by implementing a successful supply chain management strategy.
If you need help crafting yours, contact us today. We handle many aspects of business strategizing and can help you create a functional and efficient supply chain.