The supply chain is a term that refers to the process by which products, information and financial resources are moved from the supplier to the end consumer. In many cases, there is a varying number of intermediaries such as manufactures, retailers and wholesalers. This system has to be managed in optimized fashion so as to maximize the returns to the business. Supply chain optimization is something that every business needs to take seriously.
A number of factors determine the complexity of a supply chain. These include, for instance, the type of business in question, the processes that have to be carried out for the product to reach the consumers, the size of the market (local or international) and the type of technology that is employed. The advancement in technology that has taken place in recent times has helped increase the interaction between the major players (manufactures, suppliers, retailers and consumers).
Various tools and process are used in making the chain system as efficient as possible. One of the areas t targeted is the operation costs (related to manufacturing, transportation and storage). These costs need to be maintained at the very minimum. Inventory management tools help in ensuring that consumers get products as and when they need them. Another important tool is monitoring and evaluation that helps to track progress.
The utilization of mobile-based technology can improve various aspects of the chain. Such will include field sales, marketing as well as provision of direct services to consumers. Through the mobile-based technology specific product information such as item origin, contents and manufacturing methodology can be obtained by prospective consumers. Since some consumers are quite sensitive about sustainability, information on the same can be easily communicated through the same platform.
One of the most important things that you need to do if you intend to have successful optimization is to predetermine product demand as accurately as possible. This is achieved by studying historical demand for the product and anticipating future events. If possible, attempt to get information relating to aggregated data such as groups of customers and types of products.
Before you undertake the optimization exercise you first need to thoroughly analyze your company to determine its strengths and weaknesses as relates to the supply chain. For the areas that you notice that you have no capacity to handle optimally it is a good idea to outsource the same to more specialized companies. Companies that are specialized in these areas will spend less in achieving desired results than those that are not.
Bear in mind that the process of optimization is fairly long and frustrating. As you plan to make changes to the process strive to have a global mindset. This means that you should consider all the aspects of the chain even as you plan on making changes on one or a few areas. For instance, if you are going to make changes in manufacturing, other areas such as marketing, transportation and distribution will also be affected.
Optimization of a supply chain brings with it numerous benefits. One of them is that the operation costs are significantly reduced. Increased predictability of product demand by suppliers translates into better customer service. Increased collaboration among the players helps reduce the inventory faster than in cases where such cooperation is non-existent.
A number of factors determine the complexity of a supply chain. These include, for instance, the type of business in question, the processes that have to be carried out for the product to reach the consumers, the size of the market (local or international) and the type of technology that is employed. The advancement in technology that has taken place in recent times has helped increase the interaction between the major players (manufactures, suppliers, retailers and consumers).
Various tools and process are used in making the chain system as efficient as possible. One of the areas t targeted is the operation costs (related to manufacturing, transportation and storage). These costs need to be maintained at the very minimum. Inventory management tools help in ensuring that consumers get products as and when they need them. Another important tool is monitoring and evaluation that helps to track progress.
The utilization of mobile-based technology can improve various aspects of the chain. Such will include field sales, marketing as well as provision of direct services to consumers. Through the mobile-based technology specific product information such as item origin, contents and manufacturing methodology can be obtained by prospective consumers. Since some consumers are quite sensitive about sustainability, information on the same can be easily communicated through the same platform.
One of the most important things that you need to do if you intend to have successful optimization is to predetermine product demand as accurately as possible. This is achieved by studying historical demand for the product and anticipating future events. If possible, attempt to get information relating to aggregated data such as groups of customers and types of products.
Before you undertake the optimization exercise you first need to thoroughly analyze your company to determine its strengths and weaknesses as relates to the supply chain. For the areas that you notice that you have no capacity to handle optimally it is a good idea to outsource the same to more specialized companies. Companies that are specialized in these areas will spend less in achieving desired results than those that are not.
Bear in mind that the process of optimization is fairly long and frustrating. As you plan to make changes to the process strive to have a global mindset. This means that you should consider all the aspects of the chain even as you plan on making changes on one or a few areas. For instance, if you are going to make changes in manufacturing, other areas such as marketing, transportation and distribution will also be affected.
Optimization of a supply chain brings with it numerous benefits. One of them is that the operation costs are significantly reduced. Increased predictability of product demand by suppliers translates into better customer service. Increased collaboration among the players helps reduce the inventory faster than in cases where such cooperation is non-existent.
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