Published on: July 17, 2018
in: Company News
For many manufacturing companies, building an effective supply chain is a number one goal. But, if you don’t know where to start, it can be an expensive and time-consuming task.
Contact Mindover Software online or at (512) 990-3994 to learn more about your options for tools that streamline supply chain management to meet the needs of your manufacturing or distribution business.
Building a good supply chain strategy requires understanding what it is that leads to a successful supply chain. Many factors contribute to the success of a supply chain, but there are several key actions a manufacturing company can take that will contribute to a well-established, effective supply chain.
In the following list, you’ll find five habits that lead to the most successful and effective supply chains:
- Create a Written Supply Chain Management Strategy
Few manufacturers develop a standard, written supply chain management strategy. The focus is more often budgets and business objectives. Developing a supply chain strategy should be given the same priority.
What is a supply chain management strategy? Essentially, it’s a plan that allows supply chain management to make more efficient use of limited resources over time. The strategy may also include a list of all the strengths and weaknesses, as well as the opportunities and risks that exist within the supply chain.
Updating the supply chain strategy on a regular basis will help your business maintain a clear view of the supply chain, and it’ll help you plan for and resolve any problems that may arise.
- Align Your Supply Chain with Your Business
Usually, a business’s efforts with sales and operations planning makes it easier for the company to ensure their supply chain is aligned with business needs. However, due to operational pressures and other factors, companies often allow their supply chain to fall out of alignment.
To prevent this, make sure your company leadership understands the importance of aligning supply chain management with the business, and they make it one of their top priorities.
- Employee Development Is Critical
It’s common for companies to face operational pressures daily; however, it’s important to find time to focus on employee development. This process begins by establishing a schedule of employee assessment, investing in skill development and training, and rotating managers into different job assignments to establish a healthy succession plan throughout upper supply chain positions.
- Establish a “Fact-Based” Culture
For a company to attain true success, it’s critical to establish a “fact-based” culture. Make sure employees understand that digging for factual evidence before making decisions is much preferred over accepting assumptions at face value. Make sure your managers and executives stress how important fact-based analysis is—especially amongst the supply chain teams. This will contribute to the success of overall logistics.
- Capitalize on the Latest Technology
One thing that leads to the most successful supply chains is incorporating technology like warehouse management systems (WMS) into the supply chain management strategy. Warehouse management systems can also help businesses with materials-handling automation and improving overall efficiency. Some warehouse management solutions like Sage WMS will help your company improve the accuracy of inventory-handling and will improve the allocation of human resources. In addition, things like radio frequency and barcode technology will lead to improved costs controls.
Companies that are more up-to-speed with the latest technologies in this area tend to perform better and have a competitive advantage over other companies.
An Effective Supply Chain
Companies that have an effective supply chain have learned to regularly assess their warehouse management system for issues. These issues may include unused or wasted capabilities or lack of investment in additional technologies. By making sure your supply chain systems and processes are in good shape, it will ensure you’re getting your money’s worth from your WMS and creating a more effective supply chain.
For more tips on creating successful supply chain management, join Mindover Software consultant Lloyd Smith in a reporting and analysis webinar. Learn how to effectively analyze your business data to improve your overall supply chain strategy.
Want to learn more? Download our Distributor’s Guide to Improving Profits or contact Mindover Software online to speak with a warehouse expert about how to turn your data into profitability.