Supply chain management umbrellas everything from procuring raw materials for manufacturing goods to ensuring they reach the customer in time, every time. With a seamless operational system in place — customer satisfaction is augmented, operating costs are kept in check, profits are hiked, and the overall financial condition of the firm is stabilized.
Moreover, reduced operational costs and a loyal customer base mean a business can surpass their competition without compromising on price. Keeping this in mind, from large firms to SMBs – all are actively seeking ways to strengthen their supply chain management initiatives.
Having said that, acing Supply Chain Management (SCM) does not come easy — being an end-to-end business process, many factors need to be considered before making changes.
Read on to learn more about achieving a stellar SCM strategy so you never miss out on prevailing opportunities.
What Mistakes Should You Look To Avoid?
Remember, optimizing supply chain management is not only beneficial for your profits, but it also gets you ready to adapt to changes and prepare for a better tomorrow.
Here are some of the common mistakes businesses and supply chain managers should look to avoid:
Not Making Data-Driven Decisions
You may have a spot-on supply chain management strategy in concept and on paper, but is it doing you justice?
You can evaluate based on specific, measurable, achievable, relevant, and timely (SMART) KPIs. In SCM, there are various KPIs you need to keep an eye on – order handling costs, order processing costs, fulfillment time and fill rates, the average value of the order, and cost per delivered item, to name a few.
Do your homework, narrow down to the right analytics, and don’t waste your time and money on things that don’t add to your bottom line.
Not Adapting To Change And Losing Sight Of The Future
Supply chain management has evolved with technological innovation. Deliveries that previously took days can now be completed in a matter of hours.
The COVID-19 pandemic was essentially a test of how quickly businesses could adapt to change and leverage technology to provide safer alternatives to businesses and consumers worldwide.
Businesses need to break silos and get every stakeholder on the same page with all involved parties should be aiming for a common goal.
The key is to keep your SCM strategy transparent across the board — allowing everyone to complete their role with greater efficiency.
Align your short and near-term goals with your future plans. While it is vital to break down milestones into smaller goals, ensure that they do not get in the way of the bigger picture.
Your SCM strategy should always align with your overall mission and vision
Confused? We Have Your Back
In addition to the mistakes mentioned above, you can make many more mistakes as part of your learning curve.
However, if you are looking to avoid mistakes altogether, pair up with an experienced partner like WDG Logistics. The experience and knowledge we bring to the table help us create actionable strategies that strengthen your supply chain.
We can efficiently manage all operations and logistics, so you can focus on providing quality products and services. Visit our website to learn more.
