How to Optimise Your Supply Chain
An effective supply chain will improve your business performance overall, saving you money and increasing the efficiency of your logistics. When you invest time and money into your supply chain, you can prevent delays, which will result in happier customers and, ultimately, higher revenues for your business.
However, supply chains can be complex and difficult to manage. You’ll usually have a number of different suppliers and service providers involved, from the manufacturer to freight shippers, and you’ll need to keep on top of everything to ensure your supply chain runs smoothly.
Below are some of our expert tips to properly optimise your supply chain to reap the benefits of good supply chain management.
Keep in Communication
When you’re dealing with a number of different parties, it’s essential you keep in good and ongoing communication with everyone. This will mean you’ll always know where processes of your business are at, and also means that you’ll have plenty of notice should anything go wrong. This allows you to prepare for any challenges and deal with them quickly and efficiently, rather than it being a surprise down the road.
You shouldn’t wait for something to go wrong to communicate with your partners. Instead, organise regular meetings so you can check in to ensure everything is running smoothly. You should be clear and transparent with your partners and encourage them to do the same. For any issues that arise, you should make sure that every relevant party is notified, so they can deal with it appropriately and in good time.
Utilise Technology for Inventory Management and Planning
Developments in technology mean that we no longer have to estimate demand ourselves. Intelligent algorithms can now plan ahead for us, adjusting stock and inventory in a much quicker time than having to manually plan. Not only does using these technologies save you time, but it can also cut labour costs as we as helping you to better prepare for fluctuations that you might not have been able to account for.
For inventory management, technology can also bring great benefits. Radio Frequency Identification, or RFID, uses radio frequency to transfer data. By attaching RFID tags to items, you can monitor your inventory and remove any possibility of human error that comes with scanning each item individually. The RFID chips contain data that is transmitted to a central database where the information can be further analysed or adjusted as needed.
Plan and Prepare
Planning ahead is a vital part of every supply chain. You should make sure you have the necessary contingencies in place to deal with challenges caused by delays or sudden increased demand for inventory. You should be aware of when your peak shipping period will be and make sure you have everything in place, including giving plenty of time for international freight shipping and also ensuring you have plenty of stock ready in advance. Failing to plan and prepare appropriately could mean you end with increased costs and reduced customer satisfaction.
Outsource Labour Intensive Steps
You can streamline your business by outsourcing labour-intensive and time-consuming processes. This will save you money and also means you can focus on other parts of your business that require your expertise.
For example, you can outsource warehouse services. Using an experienced warehousing provider will mean they will already have the skills and knowledge to efficiently pick and pack items, ensuring all necessary requirements are met, saving you time and money by preventing issues further down the line.
PBS International is an experienced international freight forwarder offering a complete range of specialised services to meet your shipping and logistics needs. Contact us for more information about our freight forwarding or get an international shipping quote today.