5 Critical factors impacting your supply chain

Posted by Barloworld Automotive & Logisitics on 29 Jan 2021 1:15:00 PM

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Streamlining your supply chain to improve customer experience will go a long way towards helping your business achieve its goals in 2021. Here’s five key things you should focus on to improve your supply chain performance.

We all know that if a water pipe is leaking, you are losing money. The same principle applies to your supply chain: weak points increase expenses. Below is a quick overview of some of the crucial points in the chain where ‘leaks’ can be plugged.

1. Design

One of the most important facts to remember is that every supply chain is unique. While there are many similarities in supply chains, there is no copy-and-paste solution that fits every business. If your supply chain isn’t designed specifically for your business model, it’s easy for high-cost errors to be overlooked.

Also remember that your supply chain needs to be adjusted as your business expands. It’s not always as simple as acquiring more storage space – the real savings lie in making sure there are no gaps in the chain.

2. Information

The only way to design a cost-effective supply chain is to have all the data. Effective analytics will provide you with crucial information ranging from delivery distances and fuel costs, to identifying unnecessary delays, and even predicting future needs so that your supply chain can be adapted in time.

Without accurate data, you are simply playing a guessing game, and it becomes impossible to identify areas where money can be saved. In extreme cases, this can mean the difference between the failure and success of a business.

3. Compliance

Compliance with regulations relevant to your business and supply chain is crucial. Your supply chain needs to be flexible enough to adapt to regulatory changes, because the alternative is a potential shutdown due to non-compliance. Not paying careful attention to regulation is a massive risk that can see your entire supply chain grind to a halt.

Regular compliance reviews, and planning for future regulation changes are essential to keep your supply chain running smoothly.

4. Bottlenecks

A bottleneck in your supply chain means there is an error in the design of your system. Frustratingly, bottlenecks aren’t always predictable or immediately obvious, but they can cause costly delays in your operation. Bottlenecks can be caused by anything from poor road conditions near your storage facility, to a lack of quality IT support, or even poor analytics. The solution is frequent site and system inspections, and making changes when necessary.

5. The customer

No matter what type of business you run, the customer will always be the most critical point in your supply chain. The customer experience needs to be considered at every point, as your whole supply chain leads to the same goal: ensuring customer satisfaction.

Need help with your supply chain strategy? Barloworld Automotive and Logistics has a proven track record helping blue chip organisations reach their business goals with a lean and customer-centric approach to supply chain management.

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Topics: Supply Chain Management

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