Are you looking to modernize and improve your supply chain?
The COVID-19 pandemic exposed major cracks in the global supply chain. As consumer demand soared during the pandemic, suppliers had to deal with shortages, interruptions in shipping, restrictions on the availability of raw materials, and all other sorts of issues.
This led to escalating costs, unsatisfied customers, and ultimately, loss in business. Luckily, with the right supply chain strategies, you can modernize your supply chain and turn it into a well-oiled machine. Check out these supply chain strategies for modernization to learn more.
1. Identify Risks
Identifying risks to your supply chain is one of the first things you need to do to modernize it. There are different types of supply chain risks you need to focus on. These include:
- Strategy Risk: You need to make sure you choose the right supply chain management strategy. There isn’t a “one-size-fits-all” strategy, and what may work for one company may not work for you.
- Market Risk: You need to understand the risk of outsourcing part production or entire product lines.
- Implementation Risk: You need to know the suppliers you’re working with and what their capacity issues are before signing on.
- Performance Risk: It’s important to continually monitor key performance factors once your company has chosen a supplier.
- Demand Risk: Suppliers tend to take on as many opportunities as they can, so keep an eye out for suppliers that appear overwhelmed by new contracts.
You also ned to consider the risks of third-party logistics. Read more here to learn about third-party logistics.
2. Make Use of Supply Chain Management Software
Supply chain management software can help bring your supply chain into the modern world. Here are some features you should look for in supply chain management software:
- Order Management
- Inventory Management
- Return Management
- Logistics
- Supplier Relationship Management
- Warehouse Management
- Procurement
- Forecasting and planning
- Processing of customer requirements
You also need to consider the different types of supply chain management software available. Your main options include:
- Supply chain planning
- Supply chain collaboration
- Supply chain execution
Additionally, consider key performance indicators of supply chain management software. These may include:
- Time to customer
- Accurate forecasting
- Cost reductions
- Customer service
- Flow of production process
The right supply chain management software can help reduce costs, increase company output, and improve your customer service, so it’s important to take your time researching the different software options.
3. Implement GPS and RFD Throughout Your Supply Chain
Investing in GPS and radio frequency identification will improve the connectivity of your supply chain each step of the way. From production to distribution phases, RFD will improve transparency and efficiency and provide data-driven insights to help maximize your supply chain’s ROI.
Implementing GPS will do the same, as it helps interconnect the digital supply chain through tracking software.
Supply Chain Strategies: Time to Develop Your Supply Chain
Now that you know the top supply chain strategies, it’s time to modernize your supply chain. With the tips above, you’ll have a supply chain that catapults your business into the modern age.
Check back in with our blog for more supply chain management tips!
