Inventory Management 650

5 Steps to Developing an Excellent Supply Chain

Developing an excellent supply chain is key to achieving and enhancing competencies that are vital to the success of a business, qualities such as productivity, efficiency and quality. Your supply chain is the key to your responsiveness to customer needs and greatly affects the profitability of your business. In order to develop an excellent supply chain, one must have a basic understanding the main characteristics that are essential to good supply chain management.

A good supply chain must:

  1. be flexible and adaptable
  2. enable growth
  3. have the capability to mitigate the impact of a wider volatile market
  4. be visible
  5. enable control and autonomy

Flexibility and Adaptability

Constant changes in the broader market and economy can mean the organisational structure of a business needs to be flexible and adaptable in order to survive. A supply chain management system that is responsive to market dynamics and the changing needs of the business enables quick structural changes in the most efficient way.

Enabling Growth

As your business grows, so does your supply chain, necessitating a supply chain management solution that is scalable according to your organisation’s needs.

Control and Autonomy

Obtaining the best mix of central control and local autonomy is key to being able to make quick changes in your supply chain with minimal delays and disruptions to the flow and continuity of your business. This also enables direct engagement with internal and external customer needs.

Mitigating the impact of a volatile market

Dampening the effects of negative changes in the market has a lot to do with the flexibility and responsiveness of your supply chain. When a supply chain is flexible and responsive, it becomes easy to effect any changes that will prevent losses in profit and wastages of stock, especially in retail industries.

Visibility

Enhanced visibility and flexibility have the power to boost the confidence of a sales team by enabling them to cross-sell a wider range of products and services in a way that is more responsive and effective.

Following these steps has assisted many organisations to grow the service side of the business to drive up profitability in cyclical downturns.