What are some ways to improve your supply chain in 2020?
Supply chain efficiency is essential to any modern logistics operation. Tracking production with speed and accuracy can vastly improve supply chain performance. This is true from manufacturing to fulfillment. It reduces waste, increases capacity, and delivers key insights throughout the production process.
But many supply chain providers still rely on legacy systems and outdated processes. These can hinder efficiency. Adopting strategic investments in modern solutions can end outdated workflows. Plus, software solutions produce new insights that lead to a more nimble operation.
No matter your company’s role in the supply chain, embracing new technology can greatly improve performance. At the same time, it delivers serious cost savings.
Here are five key ways of improving your supply chain system.
Better data insights
Key performance information captured at any point in the supply chain is valuable. To gain these insights, companies often use an ERP (enterprise resource planning) or SCM (supply chain management) system.
Companies can use production volumes and inventory data drawn from these tools. They paint a comprehensive picture of supply chain operations.
For instance, powerful data analytics software can transform this data into actionable information. As a result, they gain better forecasting, improved logistics capabilities, and agility.
Real-time inventory management
Legacy inventory management processes rely on physical paperwork or manual data entry. As such, they remain steps behind operations using modern technology.
Instead, modern supply chains rely on WMS (warehouse management systems). Today’s WMS make it possible to track inventory in real-time. As a result, businesses create a robust, transparent picture into a supply chain’s status. Stand-alone inventory control software is a viable alternative to full WMS systems, providing more robust functionality.
Coordinating billing with many providers can lead to accounting headaches. But integration through ERP joins these tasks with other systems.
Building off this integration is EDI. An EDI (electronic data interchange) system allows for easy, quick payments.
Together with ERP, an EDI system creates a single system of record. Plus, an ERP’s accounting capabilities can ensure swift and accurate payment processing.
Vender performance tracking
Tracking the performance of supply chain vendors ensures on-time and accurate product delivery. Modern ERP or supply chain collaboration systems make it easy to assess cycle times, errors, and more. These key vendor data points provide a full understanding of vendor performance.
Better insights into how vendors are fulfilling their duties can ensure accountability. This can help companies determine when it’s time to pursue new relationships.
Just-in-time (JIT) purchasing strives to achieve optimal inventory levels. JIT makes it possible to produce and deliver the smallest amount of products and services to meet order fulfillment. As a result of this distribution strategy, the company holds less raw materials or inventory in stock, thereby reducing costs. Yet, the company is still able to achieve timely delivery and high customer service.
Supply Chain Trends for 2020
As the new year gets underway, the time is now to address ways to improve your supply chain processes in 2020. Beyond trends like robotics or AI, companies first need to have the essentials in place.
Software including SCM, ERP, WMS and EDI lays the foundation for future success. From inventory management to distribution networks and accounting insights, lean operations depend on data.
Are you ready to leap into a lean supply chain strategy for 2020? Ask a Radley product specialist for more information today on better managing your supply chain.