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3 Strategies for Efficient Supply Chain Management

If the COVID-19 pandemic has taught businesses anything, it is the importance of having robust and reliable supply chain management (SCM) in place. A  break in any link, whether it be distribution, logistics, or technology, can easily derail the entire process costing time, money, and loss of business.

Ensuring a smooth and well-connected flow of processes that guarantee your goods and services are delivered to customers on time will also keep your business free from expensive lawsuits and product recalls. This article will explore three SCM strategies to help your business run smoothly and efficiently.

Source Dependable Suppliers

Finding reliable suppliers is key to ensuring successful SCM. Without them, you cannot fulfill your responsibilities or your customers’ expectations. Conduct thorough research to identify reputable suppliers who adhere to high standards for quality and service and have a track record of satisfied clients.

It is advisable to have more than one supplier for each product in the event that your primary supplier is unable to deliver due to an emergency, such as a warehouse fire or flood. With a backup in place such as,  alternative arrangements can be made, leaving you prepared in case of any unforeseen circumstances.

Once sourced, it is important to keep the lines of communication open with your suppliers. This way you will be apprised of any potential disruptions to your supply chain and can work together to solve any problems. An ongoing dialogue also helps suppliers plan according to your requirements ensuring they have the necessary supplies in place.

Invest in New Technologies
Leveraging technology innovations can strengthen your SCM. Various emerging technologies can assist organizations by improving delivery times, managing inventory, and accurately identifying their intersection of supply and demand.

A warehouse management system can optimize internal operations by giving a business the ability to track and document inventory usage and location, helping to reduce costs and improve operational efficiency by streamlining the warehouse process.

Transport Management software that automates the shipping and tracking process can help businesses plan, execute, and track the transportation of goods in transit. It ensures shipments are compliant with proper documentation and offers notification of any delays in transit allowing businesses to update customers.

By eliminating time-consuming and labor-intensive intervention, technology can enable your business to operate with greater speed and efficiency, helping it to stay ahead of its competitors.

Mitigate Risk
A survey by the  Institute of Supply Management (ISM) taken in spring of 2020 found that 97% of respondents said they have been or will be impacted by the coronavirus, and nearly 40% of companies reported a “severe” impact in operations due to supply chain disruptions from COVID-19.*

Creating a risk management plan which identifies potential risks and how they will impact your supply chain is vital for an organization to respond proactively to minimize any disruptions to their supply chain in the event that they occur.

In addition to the strategies highlighted above,  an integral part of a successful and resilient SCM  is the regular monitoring and updating of processes to ensure your business is constantly improving and optimizing its operations.

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