It is no surprise that supply chain management is quite a challenging task. But industry experts believe that when these challenges are addressed aptly, they can turn into reasons of success for a supply chain company. The secret of success varies from company to company. So let’s have a look at the factors that are considered key for successful supply chains:
- Visibility and Analytics – Visibility and analytics are considered two of the most contributing factors in the supply chain business. According to CSC’s ninth annual Global Survey of Supply Chain Progress, – “those that have both strong visibility and analytics capabilities are almost twice as likely to be in the top 20% of business growth as firms that don’t.” Visibility of the entire supply network gives access to critical information such as sales, order lead time, delivery dates, inventory, and the like. This information also gives an insight into possible opportunities and threats, helping you in deriving your risk mitigation measures.
- Create an entrepreneurial culture – Supply chain companies must encourage innovative thinking of supply chain managers and team members. This will enable the companies to develop new strategies to carry out routine operational processes and also deal better with an unexpected situation. It is presumed that the modus operandi of supply chain companies should include three core areas – alertness and accessibility to data, data-oriented decision making, and openness to inculcate the trait of flexibility to modify operational processes in order to accommodate new strategies.
- Implementation of technology – Technology in supply chain business can do wonders when it comes to simplifying processes, tapping correct inventory, and generating reports on peripherals like product delivery, customer service, invoice maintenance, and the like. Those supply chain companies who have included technology solutions are more efficient, error-free, profitable and cost-effective than the ones who still follow traditional methods.
- A network of distribution centres – As a supply chain company, the more distribution centres you have the more likely that customers will choose you over your counterparts who have limited distribution centres. It also means you will have to optimise your warehouse and fleet to maximise customer service that will result in maximising profit.
So, the secret of your success in the supply chain business lies with you. The only thing you will need to do is assess, rejig, and implement those factors that can maximise the potential of your business.