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away the spreadsheets- What might have been an amazing switch from paperwork a few years back, has now become just as outdated as the papers it had replaced.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. 

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.

Third Party Logistics: Choosing The Best Provider

Third Party Logistics, abbreviated as 3PL, is emerging as a solution for SME owners looking for an easy and affordable way to streamline supply chain processes. The basic role of 3PL companies is transporting freights between the buyer and seller. Since each company transports different goods, has its own budget, geographical location, and other essential factors, selecting the right 3PL provider is an important decision. The following guidelines highlight the key factors that you as business owners need to take into account for choosing the best 3PL provider:

• Scope of business- A major factor that should be considered while choosing a 3PL provider is the size of the business. While a basic 3PL that provides only transportation might be sufficient for a small business, medium and large enterprises usually require more advanced services, including additional services like customs clearance, warehousing, delivery, etc. However, it is also important to take into account plans for future expansion and ask whether the provider shall be able to accommodate them later. 
• Background check- After short-listing a few providers in the region that meet your business goals, you might want to do a background check of these providers and even talk to their previous clients. This is important to avoid any unpleasant shocks later while using their services. 
• Detailed questioning- When you have around 3-4 providers left to choose from, the next step is to prepare a questionnaire and get it filled from all these providers. While the most important consideration at this stage for most SME owners is the cost involved for the needed services, there are several other important factors that should be paid attention to.  For instance, you might want to ask the providers about their method of tracking shipments, global services, specializations, etc. An important pointer here is that while comparing rates ensure that you have included all services required for an all-inclusive quote. 
• In-person investigation- The last step before finalizing a 3PL provider should be an on-site investigation, carried out in person. It is a good idea to have at least 2 providers shortlisted at this stage. Ask them to walk you through the entire process of freight forwarding, and pay special attention to their equipment, personnel, services, and customer care. This is also a good opportunity to judge the industry knowledge of these providers.

Technology Increasing Visibility Of Supply Chains

Supply chain management or SCM as it is commonly known, is the process of integrating the process of production of products into a single stream of activities, starting from the raw material to the complete finished goods. The key focus of a supply chain is to generate profits for the business through lowering of production costs and value addition to the products and services.

Any business today thrives on flexibility. The core competencies are handled by the company itself while certain specialized functions are outsourced to vendors who can perform them in a low-cost and efficient manner. This is where a supply chain comes into picture. SCM software is used to streamline all these processes and integrate them as one.

Visibility of a supply chain today demands that in the event of any emergencies or dynamic demands, one can easily analyze the stock of material that is present in the warehouses. It also includes ways to determine how the material is to be transported across various channels and within what time span.

Technology has a major role to play in ensuring effective visibility of a supply chain.

• Warehouse management systems help an organization to maintain a database of various items that have been stored in the warehouse. They also help in the optimization of storage facilities and maintenance of inventory of the materials available. 
• Then there is software available for the transportation management systems which help in deciding on the transport routes and rates to be used for the shipping of goods. All the transportation movements of goods are handled through software.
• Management software and systems provide a wholesome snapshot of supply chain data for an organization from all sectors that make up that supply chain. This allows the organization to gather and analyze data and get visibility from all quarters that form a part of the supply chain.
• Software helps in collaborating and sharing of the data among various organizations that link up together in a supply chain. This aspect is important to ensure that information flows through the communication channels in a streamlined flow without compromising on the security part. 
• Various point of sale and merchandising software are available that help in automating the transactions that take place as part of the supply chain. 

On the whole, SCM software helps in automating and increasing the visibility of all processes related to the customer, supplier, manufacturer, retailer and wholesaler that form an integral part of the supply chain. Another key benefit associated with the usage of such software is that it helps in forecasting the demand for various products and services in the future. Such predictive analysis helps in modifying the production processes in the supply chain accordingly.

Improving Flexibility And Reducing Risk In Supply Chain

Excess inventory, increased net debt, lowering share prices- these are every investor's worst nightmare, and the key to resolving them, in many SMEs, lies in having an effective supply chain management system in place. The significance of such a system to business growth in the dynamic market that exists in the business world cannot be emphasized enough. A single overlooked issue in the supply chain can be catastrophic to the success of your business, and in some cases, can even shake its very foundation. Key goal of supply chain experts remains to improve flexibility and reduce risk, ultimately leading to better performance and higher ROIs.

The principle concern posed by a rigid supply chain is its inability to adapt to the constantly changing market scenario, as well as the fluid legal requirements imposed on supply chains. By improving the flexibility in supply chain, it becomes easier to adhere by the stringent compliance laws, hence eliminating the risk that accompanies a failure to do so. The most efficient way to achieve this increase in flexibility is through a supply chain management system that helps to boost the structural as well as functional parameters of your supply chain, resulting in the mitigation of risks and optimal utilization of human resources.

The first area that needs to be modulated is the structural aspect of the supply chain. The most important consideration here is to ensure that the framework at each stage of the supply chain is designed in a manner that accommodates tentative changes. By ensuring that the supply chain is not constrained in its capacity, product availability is optimized, and the end result is satisfied customers. In the absence of a supply chain management system that actuates this, manufacturers may be forced to remodel their products and suppliers may suffer from product shortages, while distributors can be crippled by transportation and logistics challenges.

Talking of the technological aspects of a supply chain, companies can benefit greatly from web-based solutions which enable real-time updating of data, resulting in a more agile and accessible system. Supply chain management software powered by this seamless data transfer promotes communication at the different levels of the supply chain, resulting in a system that is flexible, responsive, intuitive, and result-oriented. By achieving a high level of structural and functional integrity in the supply chain, business owners can significantly cut down on labor costs, while also eliminating the high risk involved in a manual supply chain.

McLane Logistics Technology provides cost effective software solutions to improve flexibility and reduce risk 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.

Optimizing Global Supply Chain Management

With the globalization of businesses, it is becoming imperative for companies to work towards optimizing the global supply chain management for increased sustainability. Along with enhancing relations with business partners, this also gives the company a vital competitive edge in the industry. This becomes challenging owing to the dynamic global business environment and the complex global trading regulations. The following tips are handy for optimizing global supply chain management along with assessing risk management and cost control issues-

• Partner collaboration- The key factor in the success of a supply chain partnership is collaboration between partners. This must be ensured so as to avoid fragmental functionality which can be detrimental to the supply chain. 
• Correct IT solutions- A major mistake made by most supply chain managers is failing to choose the right IT solutions for their business needs. This can be avoided by carefully evaluating business needs and budget considerations to make the right decision while choosing IT solutions for global supply chain management. To make the most of these solutions, it is advisable to be in constant touch with your software vendor. 
• Common database- Having a common database where trading partners can access vital information regarding the supply chain processes helps to encourage concise communication in a compatible language, helping to streamline the global supply chain. 
• Set milestones- When working on global supply chain management, it is important to constantly re-evaluate targets, and make an effort to raise the bar of performance higher. This can be done by setting targets to be achieved over a set time period, and ensuring that the skills of the workers are also upgraded with quality-assured processes to meet these rising expectations. It is important to ensure that enough time is allocated to the achievement of these targets along with the upgrading of resources and technology. 
• Encourage customer participation- By keeping your customers involved, you shall be in a better position to understand their needs, and upgrade your resources to meet these needs. It is advisable to invest in an integrated IT application that serves as a platform where all trading partners can interact and exchange their views on the global supply chain. 
• Upgrade technology- Just investing in the right IT solutions is not enough. It is equally important to keep this technology upgraded on a regular basis, so as to avoid economic stagnation. Along with providing increased customer satisfaction, this also helps to increase the ROI by cutting costs and promoting your company’s growth. 

To know more about optimizing the global supply chain management, visit McLane Logistics Technology at 4001 Central Pointe Parkway, Temple, TX 76504. You can also call them at 1-800-989-7568.

Supply Chain Management: Adds Value To Your Business

The supply chain is a key business process that helps to create and deliver value to your customer. If managed well, it offers enormous opportunities to improve an organization’s profitability. Good supply management helps a business to improve efficiency, customer service and cost effectiveness to compete in demanding markets and stand out from the competition. By streamlining work processes, forming stronger relationships with suppliers, and incorporating technology, you can significantly increase your company’s profitability.

The performance of a company depends on the vendors that supply goods to it, as well as the customers that buy products and services from it. They are linked through their transfer of information, materials and funds.  The collaboration amongst these entities to satisfy customer needs and reward all members of the supply chain is what is referred to as supply chain management. Today, it is a leading process-improvement, cost-saving and revenue-enhancing business strategy.

Key elements of effective supply chain management

• Delivering quality products, on time and within the budget.
• Planning ahead and executing the business deals as per the plan.
• Conducting the business in a professional and ethical manner and charging a fair price for the products and services.
• Focusing on best practices and continuous improvements.
• Using technology to improve services.

Reliability and performance are critical to adding value to your business through supply chain management. High reliability will result in decreased inventories, reduced labor costs, better cash flow, improved lead times, and better reputation. All these factors are crucial at maintaining an edge over other businesses and standing out of the crowd.

The following are important steps in reducing the supply chain costs:

• Order management: It involves keeping track of the product availability. Shipping accuracy, lead times and invoice accuracy,
• Electronic commerce: This involves using standardized computer codes, barcodes, standard numbering system etc.
• Inventory management: It comprises of keeping a tab on obsolescence of goods, price change, vendor managed inventory and communication of inventory optimization schemes.
• Logistics management: Within its purview come products return rates due to shipping damage, cycle time for delivery, proof of delivery etc.
• Sales productivity: This involves pre-sales support, post-sales support, marketing support, and business support.

For more details about supply chain management, contact McLane Logistics Technology. They are located at 4001 Central Pointe, Parkway, Temple, TX 76504. You can also call them at 1-800-989-7568.

Supply Chain Management System - Supply Chain Management Software

Simplify Logistics With Transport Management

Transportation is an important aspect of logistics. An effective transport management system is crucial in addressing and supporting your specific business goals, objectives and challenges. It’s a mandatory element for effective logistics management and it helps keep your logistics more organized and accurate. Transportation management is the backbone of the whole supply chain that helps to deliver the right product in the right quantity, at the right place, at the right time, to the right consumer.

A transport management system helps you plan your logistics business effectively. It involves cutting down on the transport cost, having less lead-time, fewer stops etc. With the help of such a system, businesses can calculate the transport cost and adjust the routes so as to decrease the transportation costs. One can easily find out which routes yield better profit margins and which stops are harming your profit ratio. In addition to this, you are sure to increase your goodwill as customers will enjoy timely delivery of products due to your effective transportation.

An intrinsic part of transport management systems are detailed and customized analytics reports. These reports help you understand your business better and find out the areas that need improvements. You can also compare the performance of various months to see where you stand. An important tool of transport management is the GPS vehicle tracking facility which helps you track your fleet of vehicles with the help of satellites. This facility enables you to give your customers an idea as to when they’ll receive the goods and helps in effective billing and accurate report generation. It also makes it easy to communicate critical data and shipments in real time through a web based portal for collaboration with your logistics suppliers and carriers.

Companies are increasingly switching over to the use of transportation management software to keep their customers happy globally. This software is of immense help in keeping a business organized, efficient and profitable. One can easily keep a tab on the logistics and avoid any chances of confusion, mistakes and miscalculations that can cost you a reliable customer. Whether you operate your own fleet or procure outside carrier services, a transport management system is required to simplify, optimize, and reduce the costs of managing a complex transportation logistics management network. It provides in-depth insight, control and visibility into all the details of your transportation operations.

McLane Logistics Technology provides reliable and customized distribution management/ supply chain management/ logistics management software to give your business an edge over competition. For more details visit them at 4001 Central Pointe Parkway, Temple, TX 76504 or call us at 1-800-989-7568.

Supply Chain Management System - Supply Chain Management Software

Supply Chain Management: The Backbone Of Service Industries

Supply chain management is a central component of every business chain, which involves delivering the right goods to the right person, at the right time. Even though this might sound as an easy task, when considered at a small level, it is actually a complex multi-step process, which requires perfection and strategy at each stage. The basic objective of any supply chain is to synchronize supply with demand, along with focusing on net value. The importance of supply chain management can be understood by taking into account the different functions performed by this component of the business chain. These function are as follows:

1. Configuration of the business network- This includes ascertaining the number and location of different people involved throughout the process. It starts from the suppliers and producers, extending to the distributers, warehouse managers, and finally the consumers.
2. Devising a strategy for distribution- This step includes various stages, which start from determining whether the operating control shall be centralized, decentralized, or shared. The next step is analyzing the best mode for delivery. Direct shipment is a practical option for most businesses. Others include cross docking, pool point shipping, and direct store delivery. The supply chain management also needs to determine the best mode of transportation to suit the company’s needs as well as budget. 
3. Proper coordination for low logistics cost- It is the duty of the SCM to ensure that all the above mentioned processes are carried out at the lowest possible cost. The key in this step is trade-offs, which are vital for optimizing logistics costs. Making choices like Full Truckload versus Low Than Truckload shipments, is the role of the SCM, and can have a significant effect on the end-process net cost.
4. Effective inter-process communication- Considering the various entities involved in the complete process, it is essential to have a binding link between each process. This role is played by the SCM. All potential collaboration is taken care of, and vital information about factors like demand signals, transportation, and forecasts, is effectively communicated to the concerned persons. Timely cash flow throughout the process is also taken care of by the SCM.
5. Inventory management- The final, yet probably most important role of the SCM is managing the inventory. With the inventory not in order, none of the aforementioned processes can be carried out smoothly.

Considering all the roles played by the Supply Chain Management in any business enterprise, it would not be an overstatement to term it as the backbone of the service industries.

For more details about supply chain management, visit Mclane Logistics Technology located at 4001 Central Pointe, Parkway, Temple , TX 76504. You can also call them at 1-800-989-7568.

Supply Chain Management System - Supply Chain Management Software

Common Issues Encountered In Supply Chain Management

Supply chain management forms a vital part of the business processes required to run operations in a smooth manner. Without having the appropriate supply chain management systems in place, there can be a lack of coordination within your company along with a disruption in supplies when they are demanded by customers. An efficient system helps address several needs related to replenishment of stock reserves and also helps ensure that your company is able to sustain the market demand for certain products. This is a very important aspect of supply chain management as a delay in providing supplies can cause your existing customers to shift to the competition in order to fulfill their needs for certain products that they require.

Some of the common issues that you may encounter in supply chain management have been specified below:

1. Loss of goods at several stages of the supply chains is one of the most widespread problems for most companies dealing in the trade of tangible goods. This loss can be due to a variety of factors including pilferage, theft, misplacement, etc. An efficient supply chain management system helps pin point the exact causes of the loss of products so that you can take suitable measures to correct such anomalies in terms of the count of goods that was originally manufactured for supply.
2. Another common problem that many companies face is the huge costs that are associated with manual record keeping of stocks. Several employees may have to be employed by an organization to perform record keeping functions especially in companies that deal in a vast volume of products on a daily basis. In such a case, there is also a chance of human error creeping in as manual counts are maintained by individual employees. Supply chain management software however can help eliminate such problems as it helps bring in automation in counting functions.
3. Companies may also find it difficult to predict the demand for their products in the market and may not know exactly how much quantity to order for sustaining the market demand. Supply chain management software generally contain useful applications that can help make such predictions based on sales data.

For more details about Supply Chain Management visit McLane Logistics Technology, Central Pointe, Parkway, Temple, TX 76504 or call them at 1-800-989-7568.

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Optimizing Supply Chain Management

Supply chain management is an inherent part of managerial activity and forms the core of any good distribution network. New software that helps to regulate the supply chain are gradually doing away with the need to employ expensive manpower for the same thus making it a more economical process. Companies that follow sound supply chain management practices generally register more sales and increased profits in the long run compared to those that rely on hit and trial methods of maintaining stock and managing distribution. Some of the guidelines that can help you optimize supply chain management activities in your organization have been enumerated below:

1. It is very important to establish a hierarchy and accountability so that it becomes easier to pin point exactly where your supply chain management process went wrong. Employees that have been hired to supervise the different stages in the supply chain should have clearly defined functions and senior staff that they can report to in a timely manner. In order to establish accountability, it is important to formulate appropriate standards so that comparisons can be made at every level. In order to make these comparisons, software can be employed for the maximum amount of accuracy and effectiveness.
2. A cost benefit analysis must be done while determining the different processes that are going to be followed in your supply chain management process so as to ensure that the expenses incurred in formulating an effective supply chain do not outweigh the benefits derived from it in terms of increased profits. It is best to go in for technologies and software that help manage the supply chain in an economic manner without heavy investment.
3. You must conduct an assessment of the resources available in your organization before you decide whether you should handle the supply chain process on your own or outsource it to a third party. In some cases where a high degree of specialization is required to manage the supply chain, it is advisable to go in for a specialist in the field for the best results. If your company does not possess the technical know-how and skills required to come up with an effective supply chain management plan and implement it, it is best to seek support elsewhere.

For more details, contact McLane Logistics Technology, located at 4001 Central Pointe, Parkway, Temple, TX 76504. You can also call them at 1-800-989-7568.

Supply Chain Management System - Supply Chain Management Software