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7 Must-Have Qualities in a Great Supply Chain

Written by: Supply Chain Online
Published on: 12 Apr 2018

7 Must-Have Qualities in a Great Supply Chain

7 QUALITIES

There are several factors that directly affect the performance of a supply chain, some of them being globalization, availability and access to large amounts of data, market volatility and ever-changing demands of the customers. This renders old strategies useless, thus demanding newer and better techniques to address the complexity and evolution of the supply chains.

Here are 7 qualities that will allow you to take advantage of the existing opportunities for capturing market share, increase profitability and brand loyalty:

1. Speed and Agility

If your supply chain is not fast and flexible, you will lose customers and it will impact everyone involved in the supply chain. It is essential to react quickly to customer demands and shorten the delivery times. Apart from focusing on delivery methods, you must be agile in order to efficiently react to the problems that may arise within the supply chain. Using shipping scales may allow you to keep a close eye on your inventory and its progress through the supply chain.

2. Sustainability

Sustainability is the key to a great supply chain. Since fossil fuels are limited, supply chains cannot depend on them for infinite time. This calls for the supply chains to become sustainable and incorporate the use of renewable sources of energy.

3. Exceptional Planning Capabilities

Good planning capabilities will take you a long way. It is almost impossible to manage any supply chain on a spreadsheet these days. Although it is still one of the most commonly used methods for planning, it would be better to implement newer supply chain planning technologies. Strong planning capabilities allow you to overcome the difficulties of user interface, increase scalability and check the suitability of data model. All these factors help in enhancing corporate performance.

4. Aligned Metrics

You need to manage various metrics such as operating margin, inventory, customer service, revenue, ROIC and forecast accuracy in order to efficiently manage the complexity of supply chains. The metrics need to be managed as a non-linear system cross-functionality. One way to manage metrics include using Industrial weighing equipment such as counting scales to optimize inventory.

5. Efficient Supply Chain Design

It is essential for companies to actively design their supply chain. Doing so will allow you to focus on designing and redesigning the supply chain flow cross-functionality. The design of the supply chain is not restricted to just a brick-and-mortar building, rather it should focus on the flow of the supply chain. You must understand the function of inventory, interplant shipments, locations of goods stocking, alignment of the suppliers and the design of the channel. Having an active supply chain matters a lot and offers a competitive edge.

6. Compliance and Visibility

You must maintain compliance and visibility through the entire supply chain. Adhere to the applicable local, state and federal laws for all the supply chain entities. At the same time, maintaining end-to-end visibility will help in eliminating all the potential issues by giving everybody the permission to see into the supply chain. Maintaining visibility allows you to self-assess and monitor the supply chain processes, thus leading to greater compliance.

7. Proactive Use of Big Data

Data is one tool that can empower you to rise above your competitors. Since there is an explosion of information, thanks to the Internet and its applications, you can use data to enhance future supply chains. Use Big Data to identify inefficiencies, create and implement creative solutions. Big Data can also be used to create verifiable forecasts for inventory needs.

To achieve and deliver excellence in supply chains, you need to have a clear vision and define the above-mentioned parameters clearly. Assess the company results with your peers and higher management to evaluate the improvement, excellence and performance of the supply chain.

  Author Bio:

 

KH 

 

Kevin Hill heads the marketing efforts at Quality Scales Unlimited in Byron, CA. Besides his day job, he loves to write about the different types of scales and their importance in various industries. He also writes about how to care for and get optimized performance from different scales in different situations. He enjoys spending time with family and going on camping trips.