Supply Chain – a brief look at improving efficiency
How to improve your supply chain, improve efficiency and ultimately improve your goal of cost control. A good supply chain manager needs to be aware of all elements not just the transportation of goods.
So in the production of even simple items you can expect some if not all of the below:
- The production of raw materials and readiness for use
- Transportation to a factory or initial processing centre
- Transport of the processed material to the manufacturing building
- Transferring an order to a freight forwarder’s warehouse
- International shipping by a freight forwarder
- Distribution to individual shop outlets
- Final purchase by the consumer
Supply Chain – a brief look at improving efficiency
Synchronisation and linking the Supply Chain
All these steps require the chain parts working very much in tandem to ensure the supply is as lean and efficient as possible. If this was not the case you could expect the final product to be prohibitively expensive.
So if a new product is made the unit cost can be expensive, because a part of it’s supply chain will not be as mature as it needs to be. Over time and with greater production this will change.
Improving the Efficiency of your Supply Chain
Looking at your supply chain to improve that isn’t just about cost controlling – so time efficiency will reap many more benefits. As a result of such integration of each part of your business it may be possible to have a measurable success.
For those elements outside of your direct control a business needs to help to make each part work towards a shared goal. Understanding the key requirements for each part of the supply chain will help mould the planning and execution, for example.
A good supply chain is good for business!
Part of a good supply chain is the freight forwarder selection, so take care to make the right choice.
