Tips for Streamlining Supply Chain Processes
Efficiency is a key to the success of any business. While this might sound simple, this can be hampered by changes occurring within the industry, staff activities, and even unexpected national crises. Then there are those industries like the supply chain that are, by their nature, the product of many moving parts. Without streamlined processes, efficiency can swiftly go out the window.
A streamlined set of processes isn’t only good for our profit margins. It can be a useful tool in managing our business’ reputation, both within the industry and to direct consumers. It helps us to build a profile of reliability and excellent customer service. A commitment to efficiency also affects the company culture, sending a message to employees that their actions and adherence to streamlined processes have an effect on the success of the business.
How can we best approach implementing streamlined processes in the supply chain? What tools are best to use, and how can we effectively insert new methods? We’ll take a look at a few useful tips that can help you on your way to process efficiency.
Planning
One of the most important aspects of introducing streamlined supply chain processes is effective planning. Don’t skimp in this area. While it can be tempting to launch headlong into making changes that will make a difference as quickly as possible, planning can help you gain a deeper understanding of what needs to change, how those changes will help, and assist you in mapping out a measurable path to do so.
Your planning should include the following:
- Analysis. Before researching methods for improvement, it’s important to commit to thorough analysis of all your supply chain processes. You should examine each step of your current supply chain — many of us don’t always understand quite how many steps there are in our chain — and identify the specific areas that are causing lag or are bloated.
- Assets. Identify which of your current systems are absolutely necessary to the process. Look for areas where steps in the supply chain can be integrated or combined to eliminate duplicate data or lag. Note the potential for upgrades.
- Safety. Establish the risks involved with streamlining the supply chain. How can these be mitigated? Remember that workplace safety is a key to productivity, so be sure to outline how this affects your practices and employees.
- Forecasting. Review the current demand for your products and where this is likely to change in the future. Understand where you can start to implement practices that can make your process fit for fluctuations before they happen.
Embrace Technology
One of the barriers to streamlining the supply chain process is being too set in our ways. While we can feel that current methods and tools work well for us and have for some time, this can shackle our ability to find new ways to outperform the competition. Instead, we need to be actively exploring the technology that can cut the fat and improve productivity.
The internet of things (IoT), in particular, has already shown potential to streamline both individual aspects of the chain and the process as a whole. RFID tags and sensors can be applied to goods from the beginning of production, with scanners present at various stages of the chain to provide real-time data on their geographical position, time spent in each area, and how they are handled. This cuts down on the number of systems and processes we are using to evaluate our product, and provides us with valuable information to make further analyses and changes in the future.
That said, we shouldn’t only examine tech that directly affects the process. Tools exist that can help us optimize the environment in which we operate. For example, industrial metal detectors can be used to locate cables and pipes in walls to help us safely plan for environmental changes. Some can also swiftly detect leaks in pipes, helping us to address problems without unnecessary interruption to production.
Chain Change Management
Whatever changes or adjustments we’re making to the supply chain, we must consider how we manage these changes. Much of supply chain operation is logical, each system efficiently leading onto the next; we must take the same logical approach to implement these changes.
Modern supply chain management seeks to use tools to consolidate the steps in the chain, and capitalizes on the relationships that are key to operations. Partnerships with suppliers can build resilience by influencing them to also improve efficiency in their practices. Communication with suppliers and staff can also help us manage the changes we make. We must be clear about what is changing and why we are making adjustments. Above all else, we must invite input and feedback, not just at the initial stages but throughout the change.
One of the primary characteristics of efficient entrepreneurs is avoiding unnecessary steps backwards. This should be applied to change management too. Keep moving forward through the implementation plan, but don’t take unnecessary additional risks that could set progress back. If during periodic evaluations of our changes, we notice further inefficiencies, we need to analyze the situation, seek feedback and advice from those involved, and make additional plans accordingly.
Conclusion
Efficiency is key to making certain the supply chain remains successful. There are tools that we can use to improve efficiency — from IoT technology to metal detectors — but we must also pay close attention to how we approach these changes. Planning can help us understand what needs to be improved and how we can achieve this while change management can optimize our chances for success.
