The ability to optimally integrate all areas of the supply chain is key to meeting customer and shareholder needs. A strategy that encompasses all allows decision-makers the visibility to see concerns early on and respond promptly. This builds a leaner, faster process while also increasing profit. Do you find the idea a bit unwieldy and difficult to implement? Finding an experienced partner to manage and engineer end to end supply chain solutions allows you to achieve this global undertaking and an efficient supply chain.
5 Areas for Reorganization
An end to end supply chain strategy allows companies to see and tailor their mechanisms within the supply chain. Deliver the products that end users want and keep shareholders happy. Some areas that can benefit from better strategy are:
Stock – Oftentimes there is confusion as to how much stock is in the pipeline, delivery that is on the way and assets that can be reused from returns. Companies need to deliver to consumers on time and order more than what they need to cover anticipated requests. Track what is available at all stages- delivery, pipeline and returns- to efficiently meet needs.
Excess & Obsolescence (E&O) – This extra product is not requested and quickly becomes obsolete. Particularly in IT and advanced technologies, the longer product sits in the pipeline, the more it depreciates in value, offering less return for companies. Reducing the amount of unnecessary product will shrink overheads and allow companies to use the cash in other areas.
Returns and Asset Management – How are returns processed and managed in a global supply chain? What parts can be reused or recycled to better manage resources? This end process gets short shrift and can be reorganized to return assets and cash into the company. This is an area to recoup loss if so inclined.
Shipping – Visibility in the end to end supply chain allows companies to know exactly what products they are delivering and what may be missing. Better practices can organize freight for complete shipments the first time. Extra product also needs to be shipped. Reducing the need for product based on knowledge of assets will decrease shipping costs as freights are smaller and less frequent. This makes consumers and companies happy.
Assembling – Shipping and deliveries of components are involved in the location of where products are assembled. End to end supply chain practices that deliver all necessary data can allow for more convenient locations that will cut costs. Reduce freight and transport time with proactive management.
Best Practices for End to End Supply Chain Presence
In a supply chain, it is important to select one decision-maker that will be held accountable for revenue and profit. Invest in internal processes to guide platform management and stock-keeping unit rationalization and simplification. Develop strong supplier relationships that encourage communication and partnership. Concerns can be worked out easier and adjustments can quickly be made. Have a presence on the ground with talented collaborative members that can give feedback on adjusting to local practices, concerns, and culture. Have clear visibility from end to end of the supply chain. An eagle’s eye is important to address delays and mitigate impact on deadlines and targets.
Better Visibility Makes for Continuous Improvement
The fact is that when a company is not always putting out fires, they can use their energy and the data from a transparent end to end supply chain process to make changes that will enhance efficiency. Advanced knowledge of concerns allows companies to have the time to respond appropriately and put processes in place to prevent similar issues. Add additional suppliers based on local conditions, price, and availability. Build stronger communications on the ground and create plans to adjust in a timely manner. These are a few of the adjustments that can be made with tighter organization practices.
Changes can make the company more agile in an ever-changing market. Swiftly adjust to changing trends and work in partnerships with teams and suppliers to guarantee better-operating procedures and a loyal customer base. With supply chains there is even more need for sustainable growth and an ability to quickly respond to multiple points along the chain. Don’t get bogged down in the problems of now but use end to end supply chain visibility to plan for future development.
Leverage the Expertise of Others
Building visibility into an end to end global supply chain presence is well-worth the investment. Lead that change in a partnership with a third party logistics company. Their teams, resources, and experience will operate as an extension to the company’s existing infrastructure. Work together to develop the agility to shift gears and easily monitor, address concerns, enhance communications, and use better practices to develop with future success in mind.