Improve productivity with effective supply chain management
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You need an Effective Supply Chain Management System for Improved Productivity

  • General News
  • 7th January 2021

There is no denying that your business’s success is inextricably associated with your supply chain’s productivity.  With the enhanced advancement in globalisation and modernisation of techniques, today’s global supply chains are becoming increasingly complex.  This complexity is what makes a data-driven approach to supply management the need of the hour.  Melbourne’s best offshoring companies offer exceptional data-driven SCM management services that allow visibility from end to end for deciphering the flow of services, information, goods from procurement to manufacturing and delivery to the end consumer.

There are a plethora of factors that drive effective supply chain management.  Data, good vendor and supplier relationships, securing the right logistics partner and effective cost control are significant driving factors. Adopting innovative supply chain technologies make a significant impact as well.  Looking way beyond logistical infrastructure, analytics considerations and systems, there cannot be any over-emphasis on the importance of a committed workforce for increased productivity in your supply chain. 

Before we delve into the intricate details, it is essential to understand the benefits of effective supply chain management.

1. Better collaboration

Information flow is a significant challenge for procurement outsourcing companiesAccording to research reports, 76% of companies lack an automated flow of information across the supply chain.  The integrated solutions are designed to remove bottlenecks and allow for the seamless sharing of information, providing a big picture view from end to end.

2. Improved quality control

Companies that have greater control over their direct suppliers, and the suppliers of their suppliers, benefit from enhanced quality control.  The process guidelines and standard minimum quality criteria can help suppliers comply with your company’s quality requirements.

3.Higher efficiency rate

Having manufacturing delays and real-time data on the availability of raw materials allows companies to implement backup plans. The latter might include sourcing materials from a backup supplier and preventing further delays.  If the companies don’t have real-time data, they often lack time to initiate Plan B, thereby resulting in problems like late shipments and out-of-stock inventory.

One thing the companies can do for higher efficiency is to implement smart automation solutions.

Now that we are through the benefits of effective supply chain management let’s look at ways to increase productivity.

4. Implement a robust training program

A practical and useful training program plays a crucial role in increasing productivity.  It helps in aligning the employees’ performance to the company’s objectives and visions.  If you are a company’s proud owner, you need to understand that human beings are the natural resources that drive the supply chain.  This is why investing in the training of employees can positively impact the company to a great extent.

Many studies show that organisations which invest in employee training out-perform the market by 45%.  You might even find it surprising that 60% of employees are more likely to stay with an employer who invests in their professional development, rather than going to an employer that pays more but takes no effort to invest in their professional development.

Many procurement and supply chain companies are designed to bring the best out of employees through innovative implementations.

5. Focus on supply chain service performance

Customer service and customer satisfaction are a couple of the most critical factors that determine your business’s profitable revenue growth.  As a business owner, the customer should be your priority when deciding upon a supply chain strategy.  The performance of your supply chain will impact customers’ perceptions of your services.  Supply chain issues mentioned below can have an adverse impact on customer satisfaction.

  • Inventory shortages.
  • Delays in response to customer service requests.
  • Slow time to market for new products.
  • Poor product.
  • Poor service quality.
  • Poor order fill and on-time delivery performance.

If you wish to tackle such issues, the root causes should be determined and addressed as soon as possible.  Enhancing customer satisfaction and creating a more successful supply chain is the need of the hour.

6. Efficient communication

If you can clearly and concisely communicate with your employees, you are sure to define organisational goals and the strategies to achieve those goals. Such effective communication is crucial to a supply chain’s productivity and operations. The best thing you can do to increase productivity is to schedule daily and weekly meetings.  And these meetings should be devoted to collaborative problem-solving that can further ensure a unified understanding of productivity and operations.

7. Development of procedure standards

Suppose you wish to reduce error within the supply chain and save both time and money?  In that case, focus on developing procedure standards and reducing possible variations in certain areas.  Those areas include shipping, receiving, quality-control, shift scheduling and facilities management.  This is undeniably one of the most practical ways to increase collective productivity and establish procedure standards.

8. Engage, align and empower your workforce

Please focus on the core skills of employees and management to empower them.  It will foster confidence, thereby resulting in a continuous increase in productivity.  As a business owner or a retailer of warehouse facilities in Australia, be sure to define your supply chain’s goals in a well-enunciated manner.  This will allow the employees and employers to make the most of existing and future opportunities for improvement.

Wrapping it up

You can quickly and conveniently achieve increased supply chain productivity through a top-down approach.  The business owners and leaders must focus on creating procedure standards, practising effective communication, empowering and training the workforce, determining a hierarchy of importance.

Enhancing productivity within the supply chain plays a vital role in the current and future success of a business.  Implementing new and innovative technologies, paying close attention to the workforce, comprehensive training and reducing costs are some of the most effective strategies that can aid in boosting your supply chain productivity.  These elements together will contribute to the creation of significant business value for your company as a whole.

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