If you want your business to function well, you need to center it in the middle of an efficient, robust supply chain. When demand patterns shift, you want to be ready for whatever customers throw at you.
However, that relies on fostering a nimble network of relationships with suppliers. Supply chains are great when they can adapt to your needs, but a nightmare when they can’t.
The key issue here is speed. The faster the supply chain can react, the better it is for your customers and business. But how can you improve reaction times? Here are some secrets.
Only Work With Reputable Suppliers
The first step in building a robust supply chain is to only work with suppliers who can actually deliver the results that you want. You’re looking for firms that offer a combination of speed, reliability and communication.
Before you start creating relationships, ask suppliers how long it will typically take to complete your orders. Then, if you have a trial period, stress test them. See whether varying your volumes affects delivery times or shipping dates.
Build A Comprehensive Supply Chain Strategy
The next step is to build a comprehensive supply chain strategy – something that will allow you to reduce process costs.
First, you’ll want to think about which supply chain strategy is appropriate for your business. Some will want to adopt a dropshipping approach, while others will benefit more from wholesaling.
You’ll then want to think carefully about who you’re going to work with. Some firms will be able to manage everything in-house whereas others will need outside support.
In many cases, you’ll want to use a supplier to keep your operations well-fueled – something you can learn more about if you click here. The goal is to keep your fleet moving without incurring the usual administrative costs of doing so.
Take Advantage Of Software
Demand planning software is improving all the time. Managers can now get access to real-time information from firms elsewhere in the system. They can then crunch all the numbers and create more reliable forecasts of order volumes in the future.
Needless to say, demand planning software is a godsend for a lot of businesses. It keeps them abreast of all the developments in their industry and allows them to respond to challenges faster than their rivals.
Eliminate Data Silos
Data silos are a big problem in the supply chain and they don’t benefit anyone. However, because the global supply chain is a disparate network of firms, it is an issue the industry struggles to resolve. Firms would like to work together, but they struggle to develop the systems that will enable them to do so.
That’s where inventory management platforms can help. These allow you to see what you have in stock and what other suppliers are processing right now. These systems help to avoid things like double ordering and coordinations with 3PLs.
In summary, modern technology makes achieving a speedy supply chain possible. However, it requires investment in both services and software to function adequately.