How to Make a Supply Chain More Efficient

The supply chain industry is about to hit $37 billion globally, which hints at just how useful and powerful this business is. 

What is a supply chain? It’s the networks and processes that work together processing, handling, and shipping products. Today is the high-speed, accurate, e-commerce age, so there’s very little room for error with your supply chain. 

We’ve got you covered with some rock-solid advice. Keep reading for more information on how to make a supply chain more efficient. 

Develop Your Employees

One of the most valuable supply chain tips you’ll ever get is to invest in your employees. They’re the most valuable asset since they work all of your processes and help get your products into the hands of your customers. 

Train everyone and offer lots of continuing education, so that everyone that works for you becomes more skilled and capable. This minimizes errors that cost you unnecessary money. 

It also allows you to grow your retention and company morale. Here are some ways you can develop and train your employees:

• Offer professional certification opportunities
• Send employees to industry events and seminars
• Provide formal courses and curriculums in-house
• Hire professional coaches for one-on-one consulting
• Run through several simulations and scenarios

Hire an executive firm to start recruiting the best supply chain professionals from all over the world. The work you put into developing your employees will offer a virtually immeasurable return on investment (ROI) for years to come. 

Stay Up-to-Date With Global Supply Chain News

The supply chain is changing, growing, and developing faster than a lot of industries. You can’t afford to get left behind, so stay up-to-date with global supply chain matters. 

Become a registered member of industry guilds, and make sure that your company always has a presence at events. Invest in a course or supply chain guide that can inform you of the most important details. 

Subscribe to all of the top-tier industry publications, along with those that cover business and finance. 

If you study your industry, you’ll improve the variables that directly affect your supply chain efficiency, including:

• Inventory turnover
• Fill rate
• Cash to Cash cycle time
• On-time shipment and delivery rate
• Customer return rate
• Freight bill accuracy
• Gross margin returns on investment (GMROI)

It takes the right information to manage these sorts of Key Performance Indicators (KPIs), so get an edge by studying the market. 

Strengthen Your Relationships With Suppliers

Relationships with quality suppliers are foundational for supply chain success. When you and your suppliers both speak the same language, you’ll know that you’re on the same page with things like delivery times, fees, and ways to optimize the entire process. 

Lock in fair rates with your suppliers and continuously build goodwill to keep the relationship going strong. Develop a rapport for handling setbacks with delivery times, breakage, insurance claims, and other issues. 

Invest in Quality Strategizing

You need an impeccable strategy to get an edge on your market. In the supply chain industry, this means hiring the best consultants and coaches to create a custom game plan. 

Building a sound supply chain strategy includes:

• Setting goals and tracking progress
• Researching the best tools and products to optimize your workflow
• Creating and charting your supply chain budget
• Weighing in on the hiring process
• Securing new real estate and fulfillment centers for expanding

Think of your company’s success for the next 5 to 10 years and what it would entail. Reverse engineer this master plan as you create a winning campaign. 

Put the Best Tech to Use

Technology is driving innovation in all industries, but it’s particularly true with the supply chain. The annual Material Handling Industry (MHI) report recently revealed that 45% of supply chain industry respondents plan to invest in Artificial Intelligence (AI) within the next 5 years. 

Expect AI to be a gamechanger in the supply chain industry, allowing it all to work with greater accuracy and speed, with fewer errors and setbacks. AI and machine learning will go hand-in-hand with automation, which is also shaking up the industry. 

The sooner you begin to embrace things like robotic pickers, AI chatbots, and inventory management machine learning, the sooner you’ll start to see your company take off. 

Monitor Everything With Software

The Software as a Service (SaaS) that you choose is the glue that will bring it all together. Choose a cloud-based Warehouse Management System (WMS) that will help you monitor every aspect of your supply chain. 

These platforms are customized to your needs and will help you make changes on the fly, collaborate between departments, create and manage contracts and other documents, and so much more. 

You’ll be able to consolidate several different jobs with an effective software platform, which gives you a return on investment (ROI) that you’ll enjoy. 

Go Green Whenever Possible

Always take steps toward eco-friendliness in your fulfillment centers. Consumers are increasingly put off by stories of companies creating more waste than they have to. 

Consistently audit the way your machines are powered and how much energy they expend. Invest in machinery with energy-saving settings, and train your employees to use them correctly and efficiently. 

You can seek United States Green Building Council (USGBC) Leadership in Energy and Environmental Design (LEED) certification. These certifications are excellent for community relations and will qualify your company for tax breaks and benefits. 

Learn How to Make a Supply Chain More Efficient

The tips above will teach you how to make a supply chain more efficient. If the supply chain is your bread and butter, consider this primer as you take decisive action. 

Consult with some pros that can help you bring your ideas to life. In the meantime, check out our other articles related to business and commerce.