Sunday, July 24, 2016

How To Improve Supply Chain Management In Five Ways

The efficient delivery of products and services relies on proper supply chain management. Many international businesses around the world use SCM to carry out operations, marketing, project management and even human resources. A supply chain includes an establishment’s system of people, activities, and resources involved in the movement of goods or services from a supplier’s end to customer premises.

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Using this description, supply chain management can then be defined as the efficient handling of supply chain activities to address consumer needs and maintain a competitive advantage. Speaking of keeping an edge, here are some wise means to enhance this aspect of business operations:

  1. Product and Consumer Segmentation – Dividing goods and customers into specific segments and tailoring supply chain solutions appropriate for each segment can help your firm eliminate unnecessary inventory and maximize on-shelf availability.
  1. Process Integration – Integrating logistics and purchasing processes can allow a seamless delivery of products and services. This can be done by aligning the objectives and the operational goals of both functions.
  1. Transparency and Information Sharing – The sharing of valuable operational data among the key players in the supply chain would greatly improve the whole process. Moreover, if information transparency is maintained, the flow of essential resources would be a lot better.
  1. Talent Management – Making a supply chain function better would also depend on the proper management of all the people involved in the process. Enhancing the competencies of an organization’s workforce would hugely help in positively transforming the chain.
  1. Virtual Integration – Tapping the help of outsourcing service providers can also provide a huge help in augmenting the capacity of a supply chain. Entrusting some key logistic functions to specialists would ultimately improve service levels and customer satisfaction.

Other smart initiatives companies can take to reinforce supply chain management efficiency include bettering driver-based metrics, carefully managing service demand, and exhausting the value-based management scheme.

Overall, it would make a huge difference for commercial establishments to work on improving all the aspects of its operations to drive more business success.


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