10 Tips For Optimizing

Supply Chain
Management
Merrchant
What is Supply Change Management
Supply chain management is the
management of the flow of goods and
services and includes all processes that
transform raw materials into final products.
It involves the active streamlining of a
business's supply-side activities to
maximize customer value and gain a
competitive advantage in the marketplace.
SCM represents an effort by suppliers to
develop and implement supply chains that
are as efficient and economical as possible.
 Tips For Optimizing SCM

1. Bring in a Leader Who Specializes in Supply Chain

Management

If you’re running a small business or startup, you can probably

handle the initial duties that come with creating and
managing a supply chain in the beginning. However, if your
company is processing a high volume of transactions and
you’re at the stage when it has become impractical for you to
handle everything yourself, you might want to consider hiring
a manager who has a degree in supply chain management.
2. Use Spreadsheets and Databases to Keep Track of Suppliers

If you’re a retail company that regularly orders and stocks thousands of

products, keeping track of all of your suppliers and making sure everything is in
stock can become incredibly difficult without an organized system in place. The
most basic and straightforward way for most people to get started is to simply
create a spreadsheet with all of the necessary fields.
3. Use Supply-Chain-Management Software and Web Platforms

When you’re ready to go beyond keeping spreadsheets, or you need a more user-
friendly approach, try using a supply-chain-management software (SCMS) to
streamline the process of recording and retrieving all data related to your
company’s supply chain.
4. Consider Reviews and Ratings When Vetting New Suppliers

As you begin to expand your supply chain, it’s imperative that you avoid doing
business with questionable suppliers and manufacturers. Making this mistake can
lead to costly mistakes related to poor product quality, slow shipping times,
unfulfilled orders, and other mishaps that can damage your brand’s reputation and
hinder the expansion of your company.

5. Use Optimal Shipping Services

Ensuring reliable shipping is another aspect of supply chain management that

requires attention to detail. Fortunately, once you’ve gotten into a system of using a
certain carrier and shipping service, this is a relatively easy component to maintain.
6. Create a Contingency Plan

If something goes wrong with your supply chain, you need to be ready to respond
with a backup plan immediately. This means having alternate suppliers on
standby so that you can have orders fulfilled when your main supplier is out of
stock or experiencing other issues.

7. Keep a Surplus Reserve Stock for Certain Items

Ideally, you should never be in a situation where you’re unable to fulfill orders for
your hottest selling items. Of course, staying in stock all the time is easier said
than done. Plus, some might argue that the goal of doing business is to sell out
of your inventory.
8. Have System of Checks and Balances

Problems can arise when there’s a lack of accountability in your supply chain.
The easiest way to create a system of checks & balances is to have managerial
employees regularly double-check each other’s work to confirm accuracy and
validate data. Essentially, you’re less likely to deal with issues when there’s more
than one person responsible for maintaining the continuity of the supply chain.
9. Practice Routine Quality Control Inspections

When you’ve been dealing with a supplier for a while, it can be easy to become
complacent in your arrangement and let your guard down. When that happens,
product quality can start to suffer without you taking notice until a dissatisfied
customer or client lodges a complaint.

10. Consider Using Financing to Fund Inventory Orders

If you find that you’re investing a lot of your company’s available capital into
keeping the supply chain running, you might benefit from using invoice factoring
and other inventory financing methods to fulfill orders without dipping into your
own cash flow.
For Further Information Visit- Merrchant

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