A supply chain analysis involves quantitative analyses of inputs and outputs, in terms of cost and value added through a chain of supply agents. Value may be expressed in terms of monetary value from the point of entry up to the time they are put out into the market. If you have used the same analysis process and it does not tally with analysis from other quarters such as financial reports, then it is time to take a second look at your analysis method.
The following six signs are an indication that you need to review and possibly revise your supply chain analysis approach and methods:
The analysis should be an ongoing process. Every activity that is regularly carried out should be analyzed so that it is possible to get weekly, bi-weekly and monthly reports. You should also be able to get the reports on what happened on any given day. If you can’t get this and you have to give notice for reports to be prepared, then there is a problem.
2. Unclear Vision
You should have a crystal clear understanding of the supply process, from when materials are ordered to when items are ready to go into the market. You should be able to see the monetary and quantitative value of your supplies at any time. This way you can know whether you are getting the best supplies and at the best prices.
3. Rising Insurance Premiums
Insurance premiums reflect the risk of damage or loss that the insurance company would have to compensate you for. If your premiums are going up, then there are increased risks. This may because of various factors like facilities, machinery or processes. It is important that you understand what are increasing your risks and address them, not only for insurance premiums but also to optimize productivity.
4. Busy Yet Unproductive
If you’re staff always appear busy, but the bottom line doesn’t reflect this, there is an issue. Whether it means employees are overworked, or that they are not being efficient, it’s important you know how your employees are working.
5. Questionable Compliance
There are recommended methods and products for carrying out operations and if you are using them, then you can ensure your business is being legally compliant. However if you are not, then you may be unknowingly not working up to legal standard. This affects your organization in terms of productivity, and can lead to legal repercussions. Apart from ensuring compliance, you also need to make sure that you keep up with changes that affect regulations and standards.
6. Takes Too Long To Fill Gaps
If a supplier fails to deliver the right quality or quantity of product on time, then there is a problem with the supply chain. A good supply chain will tell you exactly how much delays will cost you, and have additional suppliers as a backup.
If you are too close to your operations, you may not be objective enough to know if your supply chain is failing. 3PL Links will do an independent supply chain analysis and make recommendations that will optimize productivity and returns and help you grow. Contact us today for more information!