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The Impact Supply Chain Management Can Have On Your Business

24 Sep 2018

Supply chain performance and business success are tied together. 79% of businesses with high-performing supply chains achieve higher than average growth, while poor supply chains can bring a company down within five years. For your business to succeed, it’s essential that you recognise the need for a well-functioning supply chain management system that is closely aligned with your general business strategy.

stacking pallets

Cooperation Is Critical

The foundation of a strong supply chain strategy is strong relationships with partners and suppliers. Your networks develop and evolve through incremental developments involving all parties in continuous modification and improvement to the system.

A design review process that involves all partners and suppliers can further optimise service improvements and supply chain management, improving the opportunities for business success.

Reduced Costs, Better Production

How do you service your least profitable customers? Better supply chain management involving a cost to serve analysis will identify areas for improvement. However, rather than focusing on a simple cost-cutting exercise, think about ways that the chain can be improved by streamlining and optimising activities and processes that add no value to the chain.

For example, if you wish to improve your current level of production, can your logistics cope with an increased number of goods in the system? Look at inventory, storage and transportation costs and aim to minimise supply chain uncertainty so that better production can take care of itself.

Focus on Customer Satisfaction

Customer satisfaction is a driver of growth but can be totally dependent on the efficient functioning of the supply chain. Making the customer the primary focus of your supply chain is the savvy way to leverage the supply chain for business success.

Consider this: 89% of companies expect to be competitive purely on the grounds of the customer experience. Poor performance from the supply chain can therefore impact negatively on that vital customer perception and first impression. Customers expect goods to be available at a certain place at a certain time with the right after-sales support. If you can’t manage or fulfil your customers’ expectations, you need to look to your supply chain.

If your supply chain is malfunctioning, don’t despair – identify the causes and make sure you have detailed contingency plans in place to deal with any problems. Solve issues with operational performance now and align your supply chain strategy with your business goals to gain control and optimise your chances for business success.

Improve Your Position

Improving your supply chain through better management can significantly improve your profit by controlling and reducing costs. Good management can also decrease fixed assets and increase cash flow by speeding up the way product gets to the customer.

Supply chain management also has a wider part to play in society, supporting rapid-response rescue efforts and improving standards of living and the quality of life across the globe. Bringing that focus back to your business can ensure that your supply chain conforms with corporate responsibility and is a critical driver of business success.

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Please note the pallet haulage network is experiencing high volumes of traffic currently. Although unlikely we have noted a small number of delays with delivery's by a day or two