Industry research and trends confirm that effective supply chain management is directly linked to business profits and continued growth. When the flow of an organisation’s goods and services is driven by an effective and reliable system, companies can expect as much as a 70 percent improvement of their revenue growth.
However, supply chain management can be tricky – and costly – especially if not handled well. As the marketplace becomes more complicated each day, managing your supply chain becomes increasingly complex as well. The process of moving and storing raw materials across territories has become riskier. Customers have set higher expectations on quality and delivery. Finding the right suppliers and partners is now more difficult. And rising energy prices, labour rates and commodity prices make it harder to keep costs to a reasonable level.
Focusing on the following factors can help supply chains remain efficient and sustainable,:
Uphold an effective risk management strategy
Risk is an inevitable part of the business process. In fact, taking risks is even a necessity for success. But businesses should know how to alleviate, respond to, and control risks, especially when it comes to sourcing, credit, product launch, delivery and other elements of a supply chain.
Work with top talent
The supply chain is made up of many moving parts, and qualified, strong and highly capable leaders help hold it all together. Companies should invest in a strong talent recruitment, development and retention strategy to make sure the best possible people work on their supply chain.
Establish the right systems
From scheduling deliveries and designing routes through to forming partnerships with suppliers, every single component of the supply chain will only be at its most effective if it adheres to a tried, proven established process that’s part of an overall system. Fortunately, businesses can now choose from a wide range of software and other solutions that make systems building and maintenance simpler and more cost-effective.
Invest in expert guidance
In many cases, successful supply chain management can be the only thing that separates a business from its competitors. That’s why you can’t go DIY on this. To truly get ahead in the game, organisations need help from supply chain specialists. The Bis-Henderson Consulting team can recommend – and implement – solutions that will allow your business to meet and even exceed its objectives, benefit from cost savings, and enjoy sustainable profit.