Monday 25 March 2013

Get Smarter With Supply Chain Management

Supply chain management plays a vital role in streamlining the functioning of a business, as well as optimizing the return on investment. With businesses investing thousands on supply chain management, it is important for businessmen to understand how supply chain management works, and make the most of the investment for their business. The following guidelines highlight the major considerations that need to be made for the smooth functioning of a supply chain management system- 
  • Stack away the spreadsheets- What might have been an amazing switch from paperwork a few years back, has now become just as outdated as the papers it had replaced. Spreadsheets are not as great as they might seem for data keeping, with the enormity of the data in a supply chain making it important to step higher into the technological echelons. 
  • Remain industry-specific- Even the most advanced and expensive supply chain management system can end up becoming a nuisance if it does not meet the specific requirements of your industry. Such a system might require a huge amount of customization, which is why it is important to ensure that the supply chain management system you use is geared to meet your needs. 
  • Integration of parallel functions- Merely investing in a supply chain management system is not enough, as it is equally important to ensure that this system is being utilized to its maximum capacity with the various functionalities being synchronized with each other. This includes finance, sales, and operations, which when managed efficiently, contribute to the effectiveness of the supply chain management system.
  • Personnel training- How you train your employees goes a long way in determining how well the supply chain functions. It is important to involve the personnel that shall be involved in operating the SCM at every stage of the process, right from the installation to the execution. 
  • Constant evaluation- Most importantly, you need to keep an eye on every stage of the supply chain to ensure flawless functioning. Even one faulty link can jeopardize the entire supply chain, which is why it is important to ensure that the process is constantly evaluated and any necessary changes are made as and when needed. 
With the supply chain management of a business taken care of, the remaining functionalities fall into place automatically, and there is a visible change in the efficiency and productivity at each stage. 

Monday 11 March 2013

Supply Chain Management: How It Reduces Organizational Cost?

The supply chain is the spine of any business involving the distribution of goods, right from the manufacturer to the consumer. Supply chain management is crucial for the profit of a business, with every single link playing a role in the bottom line of the business. In order to understand the need for an efficient supply chain management system, it is important to have a clear understanding of how organizational costs are brought down by supply chain management. 
  • The first way by which supply chain management works is by ensuring demands are met in the most efficient way, which ensure complete customer satisfaction. Customer satisfaction impacts business sales and profits, bringing down the overall organizational cost.
  • Supply chain management also helps to improve communication between different networks in the supply chain, hence decreasing inventory cost by lowering inventory costs. It also helps to bring down lead times in manufacture, supply, distribution, and delivery of goods. All this contributes in a reduction in the organizational cost of the business.
  • With most modern supply chain management systems being completely automated, there is also a reduction in the cost of personnel involved in carrying out the functioning of the supply chain. Cutting down on these costs also brings down the overall organizational cost. Another way in which the complete automation of this process helps in improving profits for the organization is by minimizing the likelihood of errors.
  • A well-managed supply chain helps in making accurate forecasts of demand based on previous sales. This ensures that orders are placed only for products that are actually needed, which helps to minimize wastage, and hence decrease organizational cost.
  • Businesses can also decrease redundancies at various stages of the business via supply chain management. This can be done through a careful analysis of the functions being carried out at different stages of the supply chain, and identifying those processes that are either being repeated, or that can be eliminated without any significant impact on the business. 
  • You can boost the buying power of your business through a well-managed supply chain. This is because the supply chain management system gives you a clear outlook of the trends in your business, hence enabling you to buy bulk products without the fear of wastage. In this way, you get a better price for the products than you otherwise would, and hence bring down your organizational costs. 
McLane Logistics Technology provides cost effective software solutions to improve flexibility and reduce costs in supply chain. To learn more about their services, visit them at 4001, Central Pointe Parkway, Temple, TX 76504. They can also be contacted at 1-800-989-7568.