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Are You Considering Any of These Six Approaches This Year? Featured

Are You Considering Any of These Six Approaches This Year? person sitting on bench watching sea

In today’s business environment, repeating the same strategy, over and over again- even if it has been working well- will no longer assure you success. There is always pressure to compete in a challenging environment. There is also a need to contain spiraling costs and produce results, regardless of the problems in the business environment. Rather than merely improving your operations, you must transform completely. You have to stay in touch with the ever-changing business landscape. As we embark on a new year, here are some approaches that you need to consider for your supply chain business.

  • Establish a supply chain council

Every successful business needs proper leadership. This can only be achieved in supply chain business by engaging a group of people with knowledge in this area. An internal supply chain council will help lay out a strategy for the efficient running and functionality of your organization. Engage an internal team from each department depending on the size of your organization.  The membership of the council should include the executives, and departmental managers, and other influential figures. These individuals must hold regular strategy meetings to give direction and align the supply chain strategy to the organization's primary mission and vision.

  • Ensure there is adequate staffing

Staffing is the most critical aspect of supply chain operations. It begins with obtaining the right people and training them in all aspects of the supply chain. Organize staff to supply chain functions in a manner that will maximize operational effectiveness and bring benefits to your company. Your company is best served by employing proficient supply chain professionals in different departments within your organization. Whether centralized or hybrid approach, correct staffing is crucial for success. Hire managers who are strong in communication and management of relationships, both internally and externally, and with the ability to think strategically to create value.

  • Take advantage of technology

The rising customer demands in the world today require companies to take advantage of technology to enhance efficiency and structure workflow and processes. Review your organization’s processes and identify those that can be improved by technology. Implement a technological platform that best satisfies customer needs and builds efficiency in operations.

  • Build alliances with suppliers

No supply chain company can succeed without building a good alliance with key suppliers. The alliance must be built to enable two-way communication where all parties work together to enhance the buyer/supplier relationship. This is often called alliance management. It provides a mechanism where the supply chain issues can be sorted out and continuous improvement goals established. Ensure that performance measurement objectives are met and the alliance management program is strong.

  • Optimize your inventory

The current economic challenges mean that financial teams and managers must continuously look for a new way to improve their operations and reduce working capital. One way of doing so is to continually review the inventory quantities and keep them at a sustainable and optimal level. The best supply chain companies pay attention to inventory to ensure no item lies idle in the warehouse. Poor planning, lack of forecasting, and failing to monitor the inventory are the leading causes of lack of balance in the needs of a business. Accordingly, companies must emphasize demand planning and forecasting as a way of ensuring optimal inventory levels.

  • Practice social responsibility

Like other organizations, the responsibility to society must always be on the table for a supply chain company. Be aware of the carbon footprint throughout the supply chain and consider the environmental impact of your operations and the suppliers you choose—work towards uplifting the less fortunate. Also, try to establish policies and procedures that seek to improve friendly workplace and employees.

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Scott Koegler

Scott Koegler is Executive Editor for PMG360. He is a technology writer and editor with 20+ years experience delivering high value content to readers and publishers. 

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