Five Steps To Supply Chain Planning Success
/When it comes to supply chain planning, businesses need to make sure they are prepared for anything. That's because market, economic, and industrial environments can change at a moment's notice. This article highlights five steps every company should take when it comes to supply chain planning.
1. Define A Supply Chain Plan
The first step recommended here involves defining a supply chain plan. This includes everything from finding the right supply chain planning software to having a backup plan for any possible disruption within the supply chain. This plan should be quick to implement at all levels of the supply chain, from the acquisition of raw materials to the final mile delivery of the cargo.
In some cases, it may be necessary to consider outside help when creating the right supply chain plan. This is because there are increasingly more opportunities out there to make the supply chain more efficient. The right consultant will be able to find opportunities that may not be visible to internal staff.
2. Agree On An Inventory Strategy
An efficient supply chain plan will always have inventory available for the customer when it’s needed. Some businesses may consider using a third-party fulfillment center to ensure they are able to deliver to customers when needed, or prefer to have their own warehouses and deliver to customers directly.
A good inventory strategy should be flexible as there will be times of economic expansion and contraction. Companies should be able to quickly adjust their strategy to stay as efficient as possible.
3. Optimize The Supply Plan
Once the supply chain plan is in place, companies need to find ways to make their plans more efficient. This is largely because a well run supply chain is better positioned to lower costs and deliver increased profits down the line. Optimising the supply chain may involve upgrading the supply chain software, lowering costs, or automating key activities along the supply chain to increase efficiency.
4. Be Flexible
A well-run supply chain should be able to handle possible disruptions. This includes everything from worker strikes to pandemics and weather events. A big part of any supply chain plan should be a series of contingency actions for any possible situation that can negatively affect the supply chain. The business should also define a risk mitigation strategy for improved responsiveness.
5. Make Decisions Quickly
A supply chain should be able to respond quickly to changes - both internal and external. There should be a system in place for managing changes to the supply chain. The ability to react quickly can potentially save the business a considerable amount in operational costs.
A well-run supply chain can certainly help to successfully manage operational costs, thereby giving the business a significant edge over its competition. Supply chain managers should thus have a robust and comprehensive supply chain plan in place that addresses key business risks.
When it comes to the sales team, understanding the difference between sales management and account management is key. Both roles are essential to a business’s success, but their responsibilities and goals often overlap in ways that can be confusing. By focusing on how these roles work together, businesses can get the most from their teams.