Effective supply chain management is critical for efficient warehouse operations. Supply chain managers need to learn from historical errors or victories, effectively plan for the future, and proactively address concerns before they arise. This forward-thinking approach is accomplished through a supply chain management process. Here’s an overview of supply chain management and the key benefits of successful implementation. Show
What is Supply Chain Management?Supply chain management is a business-focused approach to managing an organization’s product from start to finish in the most efficient and transparent way. Raw materials are converted into finished goods and delivered to clients quickly and efficiently. The overall objective of supply chain management is satisfying both customers and stakeholders simultaneously. This means an effective supply chain management process delivers goods to customers in a timely and efficient manner while also generating a profit for the company. The five steps of supply chain management include:
Facilities that excel in these steps provide their organization a high net value and ROI. These practices are also conducive to the development of an infrastructure that wards off competitors, leverages best of breed logistics practices and material handling technologies, and synchronizes the supply chain while measuring performance levels and KPIs. Not sure which strategy makes the most sense for your operation? Speak with a member of the Conveyco team! 6 Benefits of Effective Supply Chain ManagementSupply chain management helps companies manage the flow of goods from start to finish. As such, the term is incredibly broad and encompasses a wide range of operations. The benefits of supply chain management are similarly extensive. However, here are six positive outcomes of effective supply chain management. 1. Increased Customer SatisfactionCustomer satisfaction is one of a facility’s primary objectives, particularly in ecommerce. Supply chain management plays a key role in customer satisfaction, ensuring companies are able to fulfill promises to customers and deliver products in a timely manner. If a finished product isn’t delivered within two days of the promised date, 69% of consumers say they’re much less likely to shop with that company in the future. The COVID-19 pandemic has disrupted supply chain operations for many organizations, but only 21% of consumers are willing to forgive companies for pandemic-related delivery challenges. This means that effective supply chain management is a hot button topic when it comes to customer satisfaction. Supply chain management is also critical to improve total order cycle time, which is the amount of time between an order being placed and when it’s delivered to a customer. While a streamlined supply chain process can improve your total order cycle time, an inefficient process can harm it—damaging customer satisfaction and retention. 2. Effective Inventory ManagementInventory management is critical for warehouse operations to run smoothly. When done effectively, inventory tracking can improve inventory accuracy and inventory visibility. This has several benefits, including:
Effective supply chain leaders will prioritize inventory management in their supply chain activities to mitigate potential risks of late shipping and increase customer retention. This gives them a competitive edge over facilities that struggle with inventory accuracy. 3. Improved Quality ControlQuality control is an incredibly important part of supply chain management. Supply chain professionals should incorporate regular audits of their vendors and raw materials into their supply chain management process to ensure a consistent level of product quality. This benefits both the facilities and their vendors because it can alert them to potential areas of improvement, allowing them to correct their mistakes before making them with other facilities. 4. Lower CostsWhile overhead and operating costs are an unavoidable part of operating a business, it’s the objective of supply chain professionals to lower costs and increase returns. Without effective supply chain management, your facility will experience an increase in costs. Ensuring the product management process goes smoothly from start to finish is essential to reducing your spending and maximizing your profits. 5. Optimized DistributionDistribution is one of the most important facets of supply chain management. Organizations that excel in distribution increase profitability of their operations by leveraging “best of breed” logistics practices and proper material handling technologies for their facilities. 6. Improved Labor OptimizationLabor is one of the most pressing concerns for modern warehouses. The number of available jobs is at a record high, with more people leaving the warehousing industry than entering it. Furthermore, 71% of facilities typically take more than a month to adequately train new workers. It’s more urgent than ever for distribution centers to find solutions to their top labor consuming applications. One of the primary advantages of supply chain management is the ability to incorporate automation into the process. It helps determine when automation is appropriate, and how much is necessary for a facility. How a WES Can Optimize Your Supply ChainA Warehouse Management System (WMS) is a critical tool for most warehouses, but has several limitations. It’s difficult, risky, and expensive to try and customize. It also tends to be insufficient in addressing all the facility’s needs. A Warehouse Execution System (WES) can augment your WMS, allowing for a higher degree of customization that accomplishes many tasks the Warehouse Control Systems (WCS) and WMS software can’t. While a WMS is effective at supply chain integration, the addition of WES can optimize your labor and equipment to achieve peak performance from both. The Importance of RightFIT Order Fulfillment to the Supply ChainEvery business, and distribution center, is different. Therefore, not every tool and technique will work the same for every facility. For this reason, it’s important to ensure the solution is the RightFIT for the problem. If you’re interested in learning more about how to take a holistic approach to order fulfillment, schedule a consultation with us. In doing so, you’ll be able to speak with one of our experts and learn how to find the solution that makes the most sense for your operations. Which of the following is not benefit of effective supply chain management?Which of the following is not a benefit of effective supply chain management? Supply chain management often results in fewer suppliers.
Which of the following is a benefit of effective supply chain management?Improved product and material flow
Effective supply chain management enables companies to improve product flow through accurate demand and sales forecasting and also improve inventory management to arrest the bullwhip effect and avoid underproduction.
Which of the following is not a purpose of supply chain management?The goal of supply chain management is to provide customers with the right bundle of time, place, form, and possession utilities. Meeting this goal efficiently, effectively, and sustainably is a challenge. Managers employ a variety of approaches to maximize capabilities and create network synergies.
Which of the following is not a part supply chain management system?The five basic components of supply chain management are Plan, Source, Make, Deliver and Return. Hence, "cost" is not one of the five basic components of supply chain management.
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