Do you Have Optimal Supply Chain Stability?
As any manufacturer or distributor knows, their supply chain is not any single business function. Rather, the supply chain is a network of suppliers, manufacturers, warehouses, distributors, and retailers who are all working together to get products into the hands of customers. It sounds straightforward, but supply chains across industries continue to become more complex and face more risks. So, the big question is: how does a company maintain supply chain stability in the face of these challenges?
At Taylored Services we are supply chain experts and wanted to give you these 5 tips to help ensure optimal supply chain stability.
Improve your distribution network.
Your company’s distribution network affects everything from delivery tracking to sales strategy. That’s why your priority should be to improve your distribution network. Start by examining how the essential parts of your supply distribution network work together so you can spot any weaknesses or supply chain inefficiencies. For example, is your purchasing software communicating with your delivery system? Are inventory needs communicated to production teams and warehouse managers in a timely fashion? If any part of the supply chain is not as efficient as you’d like it to be, then you can consider improvements you’d like to make.
Develop a distribution strategy.
A solid distribution strategy is essential to supply chain stability. Start by setting an overall goal for your distribution strategy. For example, you may want to increase delivery speed by 2 days on all shipments. Or, you want to reduce shipping costs by 8% over the next year. Then, pull together everyone within the supply chain who will have a hand in helping you reach your goal including warehouses, cross-docks, production facilities, and suppliers. They’ll all be able to help you determine, which processes need improving.
Monitor cash flows.
The importance of cash flow monitoring can’t be stressed enough. Companies use cash flow monitoring to clearly understand how to pay suppliers and logistics partners, how often to pay them, and how to pass those expenses to customers. Supply chain stability depends on, in large part, your ability to track payment terms and conditions with everyone in the supply chain and understand the technology used for monetary transfers.
Establish information conduits.
Information conduits are channels businesses use to share important data, like tracking information, with key partners. To establish proper information conduits, make sure data is distributed promptly and properly to pertinent recipients. For example, if your factory foreman needs more materials, this information should be conveyed to purchasing managers as well as store room supervisors and delivery personnel.
Use tracking software to monitor the location of your inventory. This will help you know at all times how much of product you have, how much you need, and how much is damaged. You can also keep track of work-in-progress items and raw materials. Make sure your staff knows how to use the software, so they can make updates and participate in routine inventory assessments.
Increasing supply chain security can help your business save money, make faster deliveries, reduce production time, and improve inventory management. Implement any of the 5 tips above to start creating a more secure and resilient supply chain.
Taylored Services is a fully integrated third-party logistics provider specializing in wholesale, retail, and direct-to-consumer unit fulfillment. Headquartered in Iselin, New Jersey, they operate 1.5 million square feet of warehouse and distribution space strategically located near the nation’s busiest ports, including Los Angeles, Long Beach, and New York. Since its humble beginnings in 1992, Taylored Services has grown to become a national leader in distribution, fulfillment, and warehousing.