5 ways to up your supply chain management game
Supply chains are complex ecosystem comprising people, processes, technologies and information connecting the producer and the buyer through a complex network of entities and resources. For the supply chain to function smoothly, these elements need to work in tandem to ensure efficiency.
The COVID-19 pandemic, however, brought about unprecedented disruption resulting in chaos and disorder in the value chain, and challenging businesses to devise innovative and unique strategies to survive in the post-pandemic world.
As the demand for products surges, companies are looking to recalibrate their operations and streamline their supply chains to improve efficiency and create a resilient supply chain management system that can withstand any future crisis.
Constant improvisation is key to building a system that will withstand the test of time and COVID-like disruptions. An efficient supply chain management system can be a game-changer, especially for ecommerce and logistics platforms.
Drawing on these, here are 5 ways to up your supply chain management game.
Standardisation and transparency
For any supply chain management system, it is of utmost importance to standardise processes. Using Enterprise Resource Planning, Warehouse Management Systems, Transportation Management Systems, and Ticketing Systems to increase visibility, control, and scale are the foundations for standardisation.
Additionally, adopting a data-driven approach for creating transparency and traceability will drive ownership, better objectives and key result and KPI’s for performance management. Ensuring standardisation of processes with transparency and visibility will allow more efficient management of the supply chain.
Dynamic inventory management
Inventory management is one area where brands, especially emerging ones, tend to falter. Dynamic inventory management will enable brands to bolster their supply chain management.
Efficient implementation of smart and data driven SNOPs (Sales and Operations Planning) will help reduce wastage. Companies can also use Just in Time or Vendor Managed Inventory with high Quality Control to optimise the value chain.
Technology has indisputably revolutionised the way businesses function. The pandemic has only further accelerated the adoption of technology, making automation integral to facilitating competent and well-organised supply chains.
Companies should invest in automation such as robotic processes, artificial intelligence, automated sorters with put and pick to light, using RFIDs and connected devices, drone deliveries. Automating your supply chain management is perhaps the best investment you can make to optimise while ensuring it is cost-efficient and future proof.
Value chain management
Organised value chain management is the key to optimising business operations while maximising revenues. To strengthen supply chain management, value chain investment is necessary. It would also bode well to have deeper integrations with service providers in the value chain, which will enable companies to be proactive.
Companies can also co-own parts of the value chain to exercise more control over it and streamline it according to their requirements.
Agile supply chain
In a world that is plagued by uncertainty and disruption, agility is of the essence. To that end, companies need to prioritise adaptability and scalability. As mentioned earlier, thriving in the current scenario requires organisations to realign their operations and supply chains. Agility in design, systems, processes, and people is paramount.
Rapid testing and adoption of new technologies and tools such as drones, blockchains, Internet of Things (IoT) etc., will help companies to build a supply chain for future. Moreover, going electric and becoming carbon neutral in your supply chain initiatives will ensure that you are creating a better tomorrow.
Given the current volatility in internal operations and evolving consumer behaviour fueled by external factors, i.e., the pandemic, organisations must establish their supply chain management plans and vision clearly in a way that is in sync with the current global scenario.
Investments must be made to bolster infrastructure for supply chains to ensure seamless customer experience and smooth business operations. The pandemic has opened up several opportunities for businesses to rethink their strategies and working towards a strong supply chain management system will pave the way for a better tomorrow.
(Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the views of YourStory.)