The 5 Principles of the Supply Chain

October 1, 2017 0

Want your company to succeed? Then you likely understand how critical your supply chain and logistics elements are to your business. If you don’t, then you probably should start to!

Supply chain and logistics management is the primary path to success. Everything from sublime coordination to incorporating automation into your strategies, your business can only experience growth if you are able to correctly streamline the supply chain and logistics process. Before you know it, output will increase ten-fold and you will make everything look easy.

Of course, the main questions are: what should every business focus on? How much time and resources do you need to place on structural improvements? Should you first allocate your attention to logistics cost and then identify high-level objectives – or vice versa? Here are five supply chain tips every logistics company will tell you:

1. Organize Your Inventory Strategically

Yes, Amazon’s inventory is not strategically placed. In fact, its products are scattered all over the warehouse. However, Amazon is Amazon and it is on track to become a trillion-dollar company so it can do whatever it wants.

For the most part, businesses organize their inventory strategically, whether it is through the means of category or closest to the shipping depot. Whatever the case, you need to come up with a plan to better store your goods that matches your overall strategy.

2. Pre-Communication Meetings (PCM) Will Help

Just prior to the start of your shift, management should hold a brief meeting with shipping and warehouse staff members to identify certain objectives for the workday, to spur feedback and to encourage employees to keep focused on the task at hand.

Your supply chain can receive a boost by simply communicating with the workforce.

3. It is Time to Go Mobile

Wireless printers, smartphones and tablets, cloud computing. These are all aspects that can immensely improve your supply chain and logistics management.

Indeed, it seems like all logistics companies are investing an immense sum into their mobile infrastructure to ensure that they can work on the go and complete tasks without being confined to the desktop.

You should as well!

4. The Age of Automation

In addition to investing in mobile technology, you should also mull over the age of automation.

Again, logistics companies are incorporating automation into their business models and overall strategies. Automation is playing an increasing role in the efficacy of the entire organization, whether it is business process software or email management. It saves time and manpower and it eliminates the human error, something that is more common than not in logistics.

5. Let’s Start Thinking About the Shipping

Have you thought about the shipping? If not, then you probably should.

Shipping and all of its glory are hurting supply chains and logistics management. Everything from costs to time, shipping can be vital to the success of a company.

How do you circumvent problems in this regard? Here are some suggestions:

  • Place your movers closer to the shipping station.
  • Ensure boxes and packaging supplies are close to staff.
  • Think about adding on-demand packaging.
  • Consider new transportation modes and routes.
  • Again, rethink your inventory strategies.

These are just some of the recommendations that you must mull over.

As the industry usually utters, results may vary. Logistics companies have seen and done it all. Like every other industry, they experience the ebbs and flows, the peaks and valleys, the ups and downs, the highs and lows. Of course, with some trial and error, logistics companies have been able to improve their supply chains and logistics management by simply adopting some or all of the aforementioned tips.

Perhaps it is time to begin thinking outside the box, or at least catch up to your rivals.