The supply chain management process is a complex set of activities that ensure the timely and efficient flow of goods and services from vendors to customers. While most organizations focus on the key elements of the supply chain management process, many overlooked elements can significantly impact its success. Some of these elements include:
- Ongoing monitoring of vendors
- Communication in transportation management
- Keeping abreast of new and improved technology
Ongoing Monitoring of Vendors
One of the most important but often overlooked aspects of vendor management is consistently monitoring vendor performance to ensure that the key performance indicators (KPIs) agreed to in your service contract are being met, or action is being taken to improve any issues if the KPIs are not being met.
If KPIs are not being met due to external factors that the vendor has little to no control over (for example, weather issues, overseas conflicts causing disruption in supply lines, a public health crisis such as the COVID-19 pandemic), working with your vendors to find workarounds and not penalizing them for factors beyond their control will help ensure strong relationships and increased loyalty once circumstances improve.
If KPIs are not being met due to factors that are within the vendor’s control, it’s important to keep a close eye on the plans in place to improve performance, and the progress being made. If it becomes necessary to sever a relationship with a vendor, it’s best to know as far in advance as possible so you can enact a smooth transition strategy to avoid any hiccups or breaches in your supply chain.
Reducing Costs in Transportation Management
With rising gas prices, many businesses reliant on the transportation of goods are looking at various methods for cutting costs to accommodate the additional fuel expenses. One way to do that is to ensure that you’re using supply chain software that incorporates a transportation management module.
A reliable transportation management program can help reduce the cost of shipping by organizing and optimizing transportation routes, which in turn can reduce the mileage traveled by trucks and save on fuel expenses.
In addition, a transportation management program can improve communication between all parties involved – shippers, carriers, and receivers – which enables them to efficiently share data and make more informed decisions. This can result in lower transportation costs due to faster turnaround times.
Keeping Abreast of New and Improved Technology
In the past, supply chains were managed through the use of paper-based systems and manual processes. With the advent of technology, supply chains are now being managed through the use of electronic systems and automated processes.
However, sometimes companies fail to keep abreast of new supply chain management software innovations and don’t realize that there are solutions available that far outpace their current systems.
In particular, advances in computing and telecommunications technology have allowed companies to manage their supply chains better using software such as the CloudLogix platform.
The CloudLogix system allows tracking inventory in real-time, communicating with suppliers and customers electronically, and offers sophisticated analytical tools to optimize their operations. As a result, companies can respond more quickly and effectively to changes in the marketplace, and they can deliver goods and services more efficiently to their customers.
By taking a closer look at these three overlooked elements of the supply chain management process, businesses can make significant improvements to their overall operations.
Click here for more resources provided by CloudLogix that will help you stay informed about improvements to the supply chain management process.
