Do you want to improve your supply chain? Would you like to increase your profitability? At United Global Sourcing, our mission is to deliver you the best supply chain participants to grow your business and increase profitability. It’s no wonder why the supply chain industry is growing so fast. According to a report, the supply chain industry was worth about eight-trillion dollars in 2016, and it’s said to surpass $15 trillion in 2023.
The global market is constantly expanding. More businesses are joining the world stage. Surprisingly, it’s not saturating the market; it’s giving it more depth. Supply chains are extending in length, and the expectations of customers are ever-evolving. If you want to stay ahead of your competition, you need to know the 10 secrets to improve your supply chains the experts in the industry aren’t sharing.
10 Supply Chain Improvements
Don’t go another day without knowing these 10 supply chain secrets:
Secret #1 – Auto Purchasing
One integral skill a supply chain manager must master is inventory management. Purchase too much inventory, and the manager risks not being able to sell it all if the market changes. Purchase too little inventory, and you risk losing out on sales you can’t fulfill. It’s a balancing act that takes attention to detail and a keen sense of the market.
A secret the supply chain experts in the industry don’t share is automatic purchasing. As a supply chain manager, one can auto purchase inventory if it drops below a certain level. This makes it so that managing inventory becomes more of a market study instead of a fulfillment exercise. Those managing inventory levels can focus on the maret more instead of the inventory, which will offer more opportunity to decrease costs and increase profits.
Secret #2 – Standardize The System
A standardized ERP system makes it so transactions are efficient and effective. There are less instances of mistakes, which lead to a more efficient supply chain. This will save time and money. Furthermore, a standardized system gives staff the same set of tools to operate the various portions of the supply chain, which leads to more cooperation, less miscommunication, and more innovation.
Secret #3 – Increase Transparency
Fraud, mistakes, and waste will always plague supply chains. However, with an ERP system, the supply chain can be greatly improved. The entire chain will be using the same set of tools and technologies to log transactions, which make it more about getting things done than trying to make an extra buck off the system. What’s more, transparency in a supply chain demands accountability, which improves morale. This can lead to a more efficient chain that produces more profits.
Secret #4 – Use Real Time Data
A lot of how a supply chain manager makes decisions determines how successful the supply can be. This means that the closer a manager can get to live data about the supply chain, the better chance that manager can make the best decision possible. Real time data offers a glimpse into each piece of the supply chain. This allows for better, quicker decisions to be made.
Secret #5 – Use Real Time Inventory Tracking
Spreadsheets. Hand-checked lists. Delayed communication. Does this sound familiar? These are three aspects of inventory management that occur in the traditional supply chain system. An ERP system allows for real time inventory tracking. Furthermore, ERP software can keep up with your supply chain, no matter how large it scales.
Secret #6 – Monitor Vendors Using ERP
Vendor performance is imperative to a healthy supply chain. Using ERP software, a supply chain manager can monitor performance metrics like cycle times and error rates. Having this information helps with vendor re-negotiations.
Secret #7 – Increase Cost Awareness
Across a supply chain, most participants are not aware of other participants’ costs. Increased cost awareness across the entire chain helps find opportunities for reduced costs and increased profitability. Finally, streamlining a supply chain is where a lot of money and time can be saved.
Secret #8 – Improve Returns System
Supply chains are typically hyper-focused on producing, packaging, shipping, and profiting. Unfortunately, there is a need for returns management to take place. Most of the time, returns are left at the wayside, since they don’t increase profitability, but that’s short term thinking. Returns are a great way to see how a product can be improved or altered to better fit the market’s needs. Better management of returns also decreases waste, which leads to more profit in the long run.
Secret #9 – Utilize Just-In-Time (JIT)
Decrease inventory cost and turnaround utilizing JIT within an ERP system. This decreases order fulfillment mistakes and overhead costs. Operating at optimal inventory levels ultimately reduces warehouse costs, too.
Secret #10 – Streamline Finances
Reduce excessive paperwork and financial mistakes with an ERP system or otherwise. Also, integrating electronic data interchange (EDI) and electronic funds transfer (EFT) can substantially reduce payment processing and associated delays.
United Global Sourcing: Your Premiere Sourcing Company
If you’re looking for a top-tier global supply chain management company, we’re who you can trust. Communication and quality are our top priority, and we don’t compromise our commitment to deliver only the best. As industry experts, we have no problem sharing trade secrets, because we know that it’s easier to contact us to manage your supply chain than it is to figure it out on your own. We setup a 24-hour communication cycle, when you choose us, so you know what’s happening at all times.
If any of the secrets shared in this post don’t make sense, it’s time to give UGS a call today!