How to Innovate Your Supply Chain Management: What You Need to Know

Posted on February 13, 2023 by Rudraksha Barthwal

How to Innovate Your Supply Chain Management: What You Need to Know | Image Source: Axestrack

Organizations must prioritize supply chain management and implement strategies to increase its efficiency if they want to compete in the market.

After all, the days of the sales department being completely in charge of customer happiness are long gone. It is important to realize that a great buying experience also includes high-quality, efficient, and accurate product delivery.

The supply chain is crucial in this regard. This is so that a company’s goals and strategies can be in line with the materials and procedures required for maintaining them. The supply chain does this by integrating logistics with a company’s core business areas.

What is a supply chain and how does it work?

The supply chain, in general, refers to all the processes and routes that a product is submitted to.

Thus, it covers every aspect of a product’s life cycle, from the acquisition of its inputs to its transformation, storage, transport, packaging, sale, and distribution, among other activities.

This method also takes into account the support systems required for these activities, the work associated with them, customer service, marketing, design initiatives, and other related circumstances.

In other words, the organization’s supply chain is a problem in and of itself. The supply chain also includes various businesses and professions, including suppliers, store owners, distributors, producers, transporters, etc.

Check out the next section to learn which elements can be included in this kind of procedure in order to better understand this idea.

What are the elements that make up the supply chain?

Given the variety of products and business strategies, supply chain management is not a static concept.

In every scenario, the same product may pass through numerous other organizations, and it is up to each company to take proactive steps to establish itself as a reliable link in the chain, able to raise the caliber of the product that is supplied to the customer.

As a result, the supply chain can consist of a variety of elements, but often they include:

Purchasing strategy coordinated with demand projections;
Quote from a manufacturer of a raw material or product;
Development or, if appropriate, improvement of the products;
Storage or handling
Sale and delivery;
Exchange or return as needed;
Utilize service channels to get input that aids in process correction or improvement.

Why is it important to apply innovation to the supply chain?

How to Innovate Your Supply Chain Management: What You Need to Know | Image Source: Rawpixel

The effectiveness of the supply chain is directly impacted by the capacity for innovation. First off, it’s important to remember that this shouldn’t be limited to just the newest digital technology.

Actually, a comprehensive and integrated view of the chain needs to be the main focus. With the use of this methodology, bottlenecks can be identified and remedied.

How to innovate?

Ikea’s packaging design is a well-known example to help with this matter. The company experienced significant problems sending its furniture through postal networks, which led to frequent delays.

In order to address this, a new type of process was devised in which the furniture would now be supplied in flat packs and disassembled, optimizing the use of space and enhancing process agility.

We greatly benefitted from Dygital9‘s assistance to establish a strong technological supply chain front.

Although the use of technology is not a prerequisite for this kind of innovation, they are the ones that steadily increase efficiency and precision in the identification of these kinds of opportunities since they guarantee:

Cost savings: through the integration of the POS with the warehouses and process optimization, which enables improved demand adaptation, waste reduction, operational productivity growth, and capital allocation;
Results analysis: using more precise and comprehensive indications on techniques for better decision-making;
Space optimization: This is made possible by the integration of the supply chain linkages, which more evenly distributes the execution of processes, the analysis of demand, and the control of inventory;
Satisfaction of the general public, which now has access to quality services and a large supply of what they need.

Would you be interested in learning more about the supply chain idea and its potential for innovation? Do you wish to learn more about the procedures which will help you improve your chain? Visit our unique article on the subject below:

Supply Chain Optimization: 5 Tips to Optimize Your Supply Chain

Posted on February 6, 2023 by Rudraksha Barthwal

Supply Chain Optimization Tips | Image Source: Lokad

A company’s supply chain is made up of players at various levels and diverse logistical components, each of which plays a crucial role. Therefore, improving supply chain management is crucial for a business that wants to increase both its profitability and competitiveness in the marketplace.

1. Train your employees

Even the best tactics won’t help you manage flows and optimize your supply chain if your staff isn’t properly trained. Employees still play a crucial role in the operation of the supply chain, even if automation is a smart method to improve their workplace conditions. Specifically, supply chain training will make it simple for your staff to use the many technical tools they use on a regular basis. It is crucial that they understand how to use these tools correctly as well as how to respond quickly if something goes wrong.

It’s also crucial to train your staff in supply chain management so they can follow safety regulations and adopt healthy practices. Even better, this training will give your staff the chance to learn new management and organization techniques. Additionally, it’s crucial to make an effort to comprehend any potential employee opposition. For instance, if your staff members utilize the new tool you’ve just purchased only sometimes, you’ll need to ask them why, in order to determine whether it’s difficult to use, an inappropriate tool, etc.

2. Plan your supply chain in real time

In general, past data must be considered while planning the supply chain. The reaction time could be lengthy in the event of an incident, though. However, errors will be automatically detected and then corrected right away thanks to real-time planning and production monitoring software (ERP or PGI). In other words, planning production will enable you to implement the best plan of action to prevent a supply chain slowdown. To maximize response at their level, this system will also enhance communication with customers and raw material suppliers.

3. Analyze the entire supply chain

You will find a lot of use for technologies like inventory management software and dashboards in supply chain management. They enable the automation and optimization of many workspaces. Therefore, automation of the manufacturing line is perfect for time savings, cost savings, productivity gains, and encouraging real-time process monitoring. It’s also crucial to take the time to identify the labor-intensive roles that require automation. A thorough supply chain analysis will also enable you to clearly understand the chain’s strengths and shortcomings for improved performance. For increased efficiency and improved product traceability, automation is the best option.

True, there are more or less considerable costs associated with the supply chain’s autonomy. However, it is a long-term investment that will enable you to raise your turnover. The logistics of production can be automated for your staff’ benefit as well. They will be able to avoid risky repetitious and unnecessary duties for their health, among other things.

Supply Chain Optimization Tips | Image Source: Pexels

4. Develop a good communication strategy

The successful execution of a robust communication strategy between you, your suppliers, and your service providers is essential to effective supply chain management. You can do this by using various management tools, which will send the information as quickly as possible. In order to prevent the production chain from becoming stalled, effective communication between supply chain participants is crucial for real-time information transmission. Additionally, this reduces miscommunications and delays. Better service coordination and increased fluidity throughout the entire production chain are also made possible by an effective communication and management approach.

5. Think about cross-docking

The practice of cross-docking encourages just-in-time work. It involves drastically cutting back on stocks so that the process may go along with as much flexibility as possible. Thus, the commodities can be redistributed the same day they arrive. Cross-docking specifically entails collecting your items and distributing them across two docks that stand in for the incoming flow and the outgoing flow. The merchandise is then sorted and prepared for shipment by being packaged into parcels. The items are then directed to the second dock where they will be loaded onto vehicles and delivered to the ultimate user.

5 Fundamental Steps Involved in Supply Chain Management

Posted on September 21, 2022 by Rudraksha Barthwal

5 Fundamental Steps Involved in Supply Chain Management | Source: Adobe Stock Images

Some core activities must be accessed in order for a company’s manufactured goods to be sold. They fall under the umbrella of supply chain management. Therefore, it is crucial to understand the elements that make up and are a part of it.

Any effective supply chain management system will be able to reduce inventory, which will result in the provision of the best management solutions.

These processes can now be improved by a wide range of systems, which go hand in hand with the innovations and technology they offer. However, in order to incorporate good management, it is crucial to have a thorough understanding of the supply chain.

What is supply chain management?

Management of production processes and all activities involved in transforming raw materials into finished goods are the foundation of supply chain management. Being a crucial component of manufacturing and retail distribution.

This kind of management requires the integration of key components including financial management, operating costs, and customer service. Ensuring that all tasks are completed efficiently and accurately at all times, while also thinking about the needs and well-being of the clients. Respecting the deadlines set for delivery and being flexible with collections.

Read Why Is Supply Chain Visibility Important?

5 fundamental steps involved in supply chain management

The steps that are taken as part of supply chain management provide activities that are crucial to the enhancements and specifications that particular management includes. It involves six basic phases that are part of manufacturing systems.

Planning

Basic planning is a requirement for management at all levels since it enables the development of the plans that will be incorporated into the operations. In theory, it is crucial to market the items, whether locally or worldwide, as both have benefits and drawbacks that must be considered.

Also, the choice of the product’s manufacturing and storage processes. These tactics must be kept in mind and are an integral aspect of every company’s management.

Supplies

This is the location of raw materials and those materials necessary for the manufacturing processes of finished products. Always ensuring that the value of these is the best in the market, as well as their quality. It is important to study possible candidates to provide such supplies, as well as planning for delivery times.

The evaluation with respect to the suppliers must be done constantly so that the supply chain management can become effective, scheduling payments and guaranteeing that the essential requirements for it are executed safely.

Place

When you want this management to be really successful, it is important that the supply chain finds the right place to develop and thus allow greater performance, especially when it comes to materials or supplies.

Image Source: Amazon Business

Manufacturing process in the supply chain

Assembly, testing and packaging activities are integrated into the product manufacturing processes. Taking into account the pertinent evaluations for the performance and the different methods to apply. Likewise, the existing facilities and regulations that must be integrated are taken into consideration.

Delivery Systems

Step in which various processes related to logistics and the supply chain are integrated, recognizing the distribution, transportation and processing systems in orders made by customers. Also including work in warehouses and inventories, in some cases the hiring of operators for the management of these processes is taken into consideration.

Returns Process

One of the most important steps in the management of the supply chain, because every company must seek effective procedures for the return of products that have been defective, providing that they are very simple and without major complications.

These processes require the integration of standards that are established within the organization, in order to take into account the costs, the result and the variability in inventories. For what it is necessary to be able to verify the products that have been returned, authorize said returns, make the programming of the shipments and make it simpler to refund the money.