“Real” Best Practices for Successful Supply Chain Management

Businesses, large and small, care about keeping the supply chain from point A to B as seamless as possible.

According to the Inc.com article, Real Best Practices for Supply Chain Optimization,” a supply chain is not limited to the movement of products from manufacturing to consumer, but “supply chain optimization” touches numerous parts of an organization:  Materials, information, and finances flow through a process from raw materials or resources to finished products or services to delivery to the end user or customer.”

Successful monitoring and management of these processes can dramatically affect the success or failure of an enterprise and of a new business in particular. Some of the key elements of optimal supply chain management include:

  • Understanding the makeup of the supply chain
  • Setting a layer of metrics to assess how vendors are handling requirements
  • Extracting the best from procurement strategies and practices
  • Keeping an eye on inventories to identify damaged goods and other concerns
  • Maintaining standardization to enhance productivity
  • Scaling logistical needs to the supply chain’s use of transportation and distribution
  • Maintaining overall transparency

In this new economic reality, it is more important than ever to assess the supply chain and to understand and manage its risks.  According to “Preparing Global Supply Chains Against Uncertainty” on supplychaindigital.com, a couple of tips on how best to scrutinize the supply chain include:

>>Use RFPs to manage risks: Ask suppliers to submit Requests for Proposals as a way to document and monitor distribution.

>>Watch for quality issues and delays on shipments: In addition to a reduction in quality and an increase in delays, times when suppliers begin requesting earlier payments or their staffing begins to change frequently, should also raise red flags.

Contact us to learn more about best practices used in optimizing the supply chain.

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