The mistakes that can pull your supply chain far away from the progress are bad cost management strategy, lack of optimized business processes, neglecting data and KPI’s, poor customer service and no future planning. But how to get rid of them?
Are you drowning and searching for lifeguards nearby? Bad decision-making can be the results of questionable sources, tools and business organization while doing the SWOT analysis of your achievements, missed opportunities and improvements. You are trying and trying, but some things are constantly showing an error in the process. What’s wrong and what stops you from finally catapulting yourself and your company higher on those stairs of success
In the supply chain, some unforgivable mistakes can break up your relationship with innovations and progress. One of them is a bad cost management strategy. Cost management corresponds to a set of techniques and methods for controlling and improving a company’s activities and processes, its products, and services, all with a goal of achieving cost-effectiveness by collecting, analyzing, evaluating, and reporting cost information for budgeting, estimating forecasting, and monitoring costs. Transparency of the cost and thinking out of the box are required in order to improve. But that transparency mostly doesn’t come as a present or falling magically from the sky, and the large data being brought to the table can certainly make all those numbers join one giant math circus out there. Optimization of costs through just a few clicks and an AI brain doing all the hard work instead of you is the goal, right?
This leads us to a new hole supply chains jump in on the road – lack of optimized business processes. Good supply chain optimization is exactly what you need to perform a cost-to-serve analysis, to truck fast and accurate current expenses, and data points related to deliveries, shipments, warehousing, and sales. The key to effective business process management is in the optimization, thanks to which you can redesign an existing process to make it more efficient, streamline operations, upgrade communications, reduce errors and costs, and enhance workloads. These improvements should be continuous as businesses change, evolve, expand, and implement new technologies. In more than 100 countries worldwide companies provide supply chain with end-to-end optimization with Supply Chain Apps.
But remember, you can’t improve what you don’t measure! Not having any Supply Chain KPIs pushes you many steps back. Key performance indicators (KPIs) are a set of quantifiable measures that a company uses to track its performance over time and to make its targets and goals easily and precisely reachable. That’s one more reason why relying on AI-based solutions and applications, can easily help you avoid neglecting data and KPIs If you are in a small company, you may feel like you do not have enough KPIs or that you do not know where to start. On the other hand, having hundreds of KPIs can be counterproductive and result in the reverse effect of what you are using them for. Getting the number of KPIs right is often an overlooked element of building a goal framework, however, it is vital in ensuring that teams are focusing their efforts on the right areas and taking a balanced approach to meeting a business’ wide range of objectives.
Another problem creator is no future planning. Your supply chain strategy must be ready to adapt to unexpected changes and grow with your company’s needs. Align the design of your supply chain with your future business goals. Keep your long-term growth plan ready. And if you want to get growth and risk analysis and Simulate demand changes in certain regions and markets, then Network Design Simulator is the perfect platform for you.
One more part of reality is shown through a constant delay of the shipments, exceeding costs, urge for network redesign to improve your strategy, and missing the points to upgrade all these segments leads to poor customer service. We are all a part of a globalized and interconnected society, where modern consumers demand goods that need to be both affordable and available as quickly as possible. And a good response to this must-have comes from reliable and resilient supply chains. But supply chains are only as good as their weakest link — and that weak link often ends up being transportation. So, to avoid sinking your budget into transport logistics and not gain progress, use all help on the way to satisfy your customer and provide better service, especially the one coming from the leading-edge technology services.