The success of your business will largely depend on the correct management of the supply chain. Using tools such as warehouse management software or minimizing human errors is key to optimizing the logistics chain.
Fuel , time and money savings, together with greater customer satisfaction and a better positioning of our company in the market. That is the goal of supply chain optimization.
Coordinating all the agents that are part of it is what will allow us to enjoy an efficient and effective supply chain, where each piece fits like the hands of a clock.
Thanks to this gear, the client will receive, in the best conditions and in the estimated time, the order made. Today we tell you how to achieve success in optimizing the logistics chain.
How can the supply chain be improved?
The nerve center of all business supply chain operations is the company warehouse. From this place enter and leave all the products that are distributed.
Thus, the first step to be able to optimize the supply chain is to design a strategic logistics plan, in which all the agents that come into play in this area of our business are taken into account.
Taking into account that there is a lot of data that needs to be managed at the same time, the second step would be to get a software that is 100% adaptable to your business , which allows you to have 360 control of the logistics chain of your business.
Third, keep your business stock management up-to-date. This allows you to reduce the time that the products spend in the warehouse, and that you can guarantee a rapid replenishment of the same, to provide a good service to customers.
The strategic distribution of the warehouse would be the fourth point. Check which is the best place to place each product, taking into account their demand and the distances that operators have to travel to store or send them.
At this point, having the label reading or picking machinery and tools will be an essential point when it comes to optimizing the supply chain.
We move on to the fifth point: the transport company. Make sure that it meets the 5 basic factors to take into account when hiring her . Once you do, install a transport management system , which allows you to optimize collection and delivery times with said company.
How to avoid problems in the supply chain?
Materials that do not arrive for the manufacture of the products; stock breaks; not having a sufficient number of operators; that shipments do not arrive on time or that there are too many returns. These are some of the supply chain problems, but avoiding them is possible. We tell you how:
- Have the ability to anticipate supply problems, in order to respond to customer demands. A 100% customized logistics software is the solution .
- Reorganize the storage space , since the lack of space is usually another common problem. The solution is to use intralogistics solutions that optimize space or automate warehouses
- Optimize expenses, since the price of raw materials has risen exponentially and it is necessary to reduce expenses in other areas. Again, logistics software will help you see where that economic optimization can be done.
- Reach good agreements with distribution companies, since there is also a lack of drivers and fuel is becoming more and more expensive. This will ensure that you can continue to ship the goods to your customers.
What questions should be asked to improve the supply chain?
In addition to putting the above solutions into practice, answering the following questions will also help you detect possible economic or time leaks, which are influencing the optimization of the supply chain of your business.
- How many errors are made in shipments ? This will give you clues about the economic losses that your business is having due to these failures and will lead you to investigate the reasons why they are committed, in order to avoid them.
- What percentage of failed deliveries ? If they are very high, it will be necessary to verify, together with the transport company, if it is the schedules, the service or the type of client that is causing these deliveries to fail.
- How many inquiries about the status of orders do customers make ? If they are numerous, it may mean that they are asking for more immediacy or that the deliveries are not being made on time.
- How to know the productivity of suppliers ? You need to establish some parameters or KPIs that help you determine if they are giving you an optimal service or if the pace of their productivity is making you waste time and money.
conclusion
Optimizing the logistics chain will bring important improvements to your business internally and externally, in terms of business management, but also economically and in terms of reputation with your customers.
Anticipating customer needs, automating warehouses and having good control of last-mile logistics are key when it comes to optimizing the supply chain.
