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Delivery optimization

Five Simple Tips for Supply Chain Managers

Posted on March 22, 2021April 8, 2021 by xJohn

Supply Chain Management is an essential aspect of all business. Whether it be running a store room, delivering goods, or making sure that you get the best deal on materials, a good supply chain can make or break a business. These five tips can help to make your supply chain that little bit better.

Don’t overlook the little stuff
When making purchases for your organization, always be on the lookout for cost savings opportunities. Even the small things, when compounded, can be huge cost savers. An example of this UPS. By doing something as simple as reducing the number of left turns drivers take, UPS saved over 10 million gallons of gas. This simple idea saved them tens of millions of dollars.

Prevent small problems from becoming big ones
Just like small cost savings, small problems can become big ones when not given proper attention. It can take an hour to reorganize a warehouse when only a few items are out of place, or days if the disorganization gets too out of control. Keeping everything in its proper place is essential as it saves time, leaving more opportunity for other responsibilities.

Don’t be afraid to ask
If you’re tasked with making an order, and find that what you need is backordered or otherwise unavailable, do not be afraid to call your supplier and ask. It can make the difference between getting a product two days from now, or a week from now. The worst thing that can happen is that your supplier will say that they cannot assist you for whatever reason. This leads into my next point.

Make sure your supplier relationships are strong
All relationships are two way streets, take care of your suppliers and they’ll take care of you. In the business world it can be difficult, but a little bit of trust and consideration for the companies you work with can go a long way. By keeping your dealings with suppliers consistent and courteous, you make them much more likely to assist you in times of need. Delivery optimization

Keep forecasts realistic, but be sure to hold some safety stock
When managing inventory, there are three things to be avoided: Having stock expire or become valueless due to decreased demand, running out of stock, and holding too much stock. To avoid this problem make sure to forecast and to do so accurately, and to order just enough to meet your needs. As insurance however, make sure to hold a safety stock that will tide you over should a shipment get delayed or canceled.

These tips are simple, but go a long way towards keeping your supply chain running smoothly, and having an efficient supply chain can be the difference between a successful business and a failing one.

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