The 10 Key Components To A Successful Supply Chain



Introduction

As businesses are going global, the need for an efficient supply chain solution that is not restricted by geographical boundaries, or conventional tracking systems, and are better optimized to meet customer requirements is critical.

The supply chain is expected to possess attributes that facilitate agility, scalability, trackability, and end-to-end optimization to meet demands. A very crucial aspect is that it must not let any concerns slip through the cracks.

The good news is – if you want to streamline your supply chain, you will be amazed at the enormous plethora of products and services available. And the bad news is – how do you choose the best amongst the available options that check all the right boxes in terms of expectations and the latest trends?

So, we have curated a list of parameters that can help you make informed decisions when looking out for a supply chain solution that best suits your requirements.

What are the Top 10 Parameters to consider in a Supply Chain Solution?

1. Visibility

Why is visibility important?

Firstly, supply chain solutions have become increasingly complex. More people and processes are involved in any given transaction than ever before. With the proliferation of e-commerce, buyers and sellers are further removed from each other than they were a decade ago.

How can you manage all these moving parts without comprehensive visibility? Secondly, with the help of cloud technology and mobile devices, everyone expects real-time updates on what’s happening along the supply chain. If you cannot provide them with a granular level of visibility, someone else will, which could mean losing business to competitors.

Finally, internet technology has done for business what the falling apple did for Newton – opened a world of possibilities we never imagined.

The increased connectivity has created more ways for us to partner up with others – whether it’s across town or continents. However, it also makes us vulnerable to new risks that we may not have accounted for in the past (like cyber-attacks).

We need ways to stay connected while protecting ourselves from disasters.

2. Flexibility

When evaluating how flexible a supply chain management tool is, you’ll want to consider:

● How does it enable you to make quick and easy changes to your production and manufacturing process?
● How easily does it integrate with other parts of your business that are affected by the supply chain

Think about how your sales and marketing can react quickly to changing market conditions. Is there a way for them to send information directly into the tool so updates can be made without sending emails back and forth?

The ideal supply chain solution would include analytics tools that provide real-time data on customer demand. This implies, that as soon as you have new sales numbers, they’re reflected in the system.

This kind of flexibility can enable you to incorporate changes faster and with confidence, as your actions are data-driven. You’ll be able to change your product design and production schedule as per customer needs. This can help you stay ahead of potential issues like poor quality or late deliveries.

All this leads to happy customers. Given your ability (or inability) to meet demand on time, this could easily be the difference between losing out on business or winning new contracts!

3. Adaptability

A supply chain management solution has to adapt to the constantly changing business environment. It has to be flexible enough to respond to unexpected changes. This includes adapting and integrating new technologies into their supply chain. They need this to remain competitive, maintain their market share, and drive profitability.

An organization’s ability to forecast and plan is key in ensuring they’re well-positioned for growth as well as prepared for any disruptions that may occur.

4. Business Impact

What we mean by a “business impact” is that the supply chain solutions should not just be an operational tool – they should also be able to help you make business decisions. The solution must be able to assist you in monitoring supplier performance and forecasting and planning. Many companies purchase expensive supply chain solutions that are just operational tools with a pretty front end.

5. Logistics Costs

This includes – storage, transportation, insurance, duties and tariffs, storage costs, handling costs, packaging costs, and customs clearance costs.

When you are evaluating logistics solutions, you must consider, that what constitutes a “logistics cost” depends on your specific business needs. A company that sells custom-made high-tech products may have an entirely different understanding of what “logistics cost” means compared to another company specializing in importing low-cost goods from overseas. As a result, each organization must do its research before choosing its supply chain solution.

6. Integration of supply chain touchpoints

Integration facilitates the flow of information across different functions in the supply chain. An integrated supply chain provides a single-pane view of data across touchpoints and facilitates informed decision-making.

7. Scalability

Scalability is an essential feature of any software solution. And as businesses evolve, they need their supply chain systems to grow with them.

8. Automation

It cannot be easy to find enough workers capable of lifting heavy objects in a warehouse. Automation allows you to improve your business by reducing the cost of labor without sacrificing production. In other cases, automation allows you to grow your business without increasing your headcount. Automation is particularly important in industries like retail and e-commerce, where consumers expect accurate order fulfillment and faster delivery at lower costs.

The most obvious example of automation is Amazon. Their use of robots in warehouses across the globe is well known. The robots pick up boxes and move them to their next destination without any hassle.

9. Ease of use and simplicity in the system’s design and operation

You must consider ease of use and simplicity when reviewing systems. Although it may seem like a given that any system should be easy to use, all supply chain solutions may not provide that benefit. It would be best if you remembered that the more complex a system is, the less likely your employees will adopt it and use it effectively in the long term.

The more simple a solution is, the easier it will be to learn and train others how to operate. With less complexity comes a lesser risk for error and fewer training headaches down the line. More often than not, simpler systems are also more intuitive – meaning they can adapt to every situation your company may encounter without resorting to workarounds or fancy tweaks. This kind of flexibility saves time and can also facilitate faster decision-making.

9. Cloud integration into analytical functions of the system

Cloud integration is also a top priority to analyze data to create actionable insights that can improve your supply chain processes and profitability. Cloud-based supply chain solutions and analytics allow you to discover new insights and make better decisions.

The benefits of cloud integration include improved security, accessibility, collaboration, cost savings, scalability, and automatic updates. However, moving your business’s operations to the cloud may not be right for every organization or solution you are considering. Consider the pros and cons of various delivery models based on your specific needs before making a decision.

Cloud computing has numerous potential benefits when it comes to supply chain solutions and applications. It can increase product customization and reduce costs and help companies integrate disparate systems into an integrated platform for easier management of data.

If you are considering purchasing supply chain management software for your business but are not sure where to start, Techwave is a market leader in supply chain solutions software.

To summarize:

● Your supply chain solutions should improve the efficiency of your organization, not impose on you more demands for data collection and analysis.
● It must be flexible and adaptable to your needs, not rigidly designed for a single type of product or service.
● The supply chain solution must be integrated into your business with employee training.
● It should be scalable, meaning it can grow as your business grows so that you don’t need to replace or upgrade it frequently or hastily.
● Rather than being labor-intensive to use, the supply chain solutions must be automated with various technology solutions that make processing orders easier and faster without human interaction (for example, through RFID tracking).

How does an efficient supply chain solution contribute to your organization?

●  Efficient supply chain solutions contribute to your organization by increasing efficiency and reducing costs. By optimizing the flow of goods and information, you can reduce inventory levels, increase sales and improve customer service. This results in a competitive advantage in the market.
●  Supply chain solutions can make manufacturing more efficient by reducing the time it takes to receive materials and increasing production rates through smart scheduling software. Your supply chain solution will keep track of what parts need to be ordered and how quickly they need to be shipped, so you don’t run out of anything. This helps ensure on-time delivery and happy customers who keep coming back for more.
●  The ability to coordinate orders across different locations and distribution channels have a huge impact on inventory costs, shipping times, and customer satisfaction when they receive their orders promptly. An efficient supply chain solution will connect all aspects of your business so that you have complete visibility.

About Techwave

Techwave is the one-stop technology solutions company that helps your business to excel in today’s rapidly changing business environment. We are a team of highly qualified and experienced professionals who believe in creating supply chain solutions that delight our clients by leveraging the latest technologies and trends in the industry. Techwave connects you with end-to-end solutions that unlock real value, making your business more innovative and efficient than ever before.

Techwave Supplyvu™ Platform

Our SupplyVu™ platform combines local, regional, and global operations, giving you real-time visibility and optimization across all your sites and extended networks. The solution is unique because it is the only collaborative supply chain optimization solution that combines supply chain planning and execution in one platform. Leveraging a single data repository, our supply chain solution enables users to communicate, collaborate, and make instantaneous decisions in real-time.