Understanding Supply Chain Efficiency

Your supply chain is essential to your business’s success. An efficient supply chain keeps everything moving along smoothly. Your supply chain manages all actions involved in manufacturing, transportation, storage, and even receiving product returns. But, even if you already have an efficient supply chain, there is always room for improvement.

Supply chain efficiency means using elements of supply chain management, like technology, specialists, and analytics, to keep your supply chain as efficient and successful as possible. Our medical fulfillment services experts want you to know efficiency is critical. First, it helps you conserve time and money. When clients get their orders fast, they are more likely to order, giving you more chances for sales. So you can save money on your overall costs and make more money. Finally, an efficient supply chain is less wasteful than others. It helps you keep unused materials and employ them in the supply chain to bypass waste. This is good for your bottom line and the planet.

Improving your supply chain efficiency and efficacy

There are numerous ways to execute supply chain modifications for improved goods and services.

  • Transparency: Gaining greater visibility of what is occurring in your supply chain is the first step for any progress. You must employ a robust supply chain management system consisting of transportation, inventory, and warehouse management systems. Warehouse management systems provide you with effective analytics and reports. Using WMS software, you can make data-driven modifications to your logistics scheme to tighten up your supply chain.
  • Communication: Open communication with supply chain partners leads to fewer surprise delays. Check in with them often to ensure everything is on track. Then, you will discover any issues before they transpire so you can plan for them. You also need communication with your crews on the ground. For instance, ask warehouse staff how everything is going and if you can do anything to enhance the operations.
  • Cultural knowledge: If you carry foreign supply chain partners, learn about their country’s holidays and periods off work. For instance, some manufacturers in China close for weeks near the Chinese New Year. Knowing when the holiday is and how long the factory will close can help you organize ahead of time, so everything runs smoothly in your business.
  • Automation: Some organizations use automation with specialties like order picking or packing to help decrease wait times and mistakes and enhance customer service. However, these automated processes still require human supervision.
  • Outsourcing: Outside automation, outsourcing is an excellent way to enhance the supply chain operation. Some businesses even outsource the logistical planning strategy to a 4th party logistics provider to allow the company to concentrate on what it accomplishes best and leave the logistics to the professionals.
  • Go green: The same things that improve supply chain execution are also excellent for the planet! You can utilize SIOC packaging to lower the overall packaging materials, which is good for the earth and your business’s bank statement.
  • Ongoing improvements: Once you execute a supply chain strategy, it’s never simply “set it and forget it.” You must check analytics and reports constantly to make modifications when required. This is another place where partnering with professionals who know about supply chain best practices comes in handy.

We hope this helps you better understand supply chain efficiency. Contact us today to learn more about our medical fulfillment services.