6 Characteristics of an Efficient Supply Chain
Several factors can affect a supply chain and companies must understand what is holding back their current network structure from becoming more resourceful. With competition rising, especially within the commodity market, it is important to stay ahead of the curve by incorporating principals into the supply chain that will make the process more efficient. Today we will outline several ways that a company can cause even simple networks to become more efficient and competitive.
At BeFlexi we focus on six simple characteristics that individually help our supply chain and those of our clients but most importantly these principals together allow us to be transparent and always remain one step ahead.
Communication – For an efficient supply chain there must be open lines of communication and common goals established between all key supply chain functions. Getting the right pieces in place will cause for a well-organized system that is focused on excellence and a common vision.
Punctuality – In order to have an efficient supply chain it is important that everyone meets certain deadlines. Many aspects of a supply chain depend on previous functions and a delay in one can cause a delay on the rest of the supply chain which usually translates to time loss and most importantly monetary and trust loss.
Sustainability – The importance of sustainability in different sections of a supply chain are important when assessing the impact it causes on the environment. Some things to think about when analyzing your supply chain are: is the technology being used in a technological matter? How about the raw material? Can you reduce C02 emissions by optimizing the transportation strategy? Is your packaging environmentally friendly? (Flexitanks are!).
Transparency – Transparency encompasses much more than the traceability of product as they make their way along the supply chain. There must also be a high level of transparency when information is flowing through purchasing, manufacturing, distribution, and sales. Suppliers must have in place policies that focus on providing visibility to their clients in order to help improve supply chain performance.
Agility – Working with functions in the supply chain that are agile and can meet your needs on short-term notice is very important, especially when dealing with commodities. Working with different entities in the supply chain that know each other and have worked together in the past will allow for a quick collaborative response when a problem arises.
Innovation – Technology can have a great impact on a supply chain that aids all the previous aspect discussed and assists in creating a faster and smoother process. In order to ensure excellence and remain competitive, companies must find ways to incorporate new innovative technologies into their supply chain processes.
These six simple characteristics are often overlooked and focusing on individually developing each and then bringing them together will allow your company to scale at a greater pace and differentiate itself from the competition. International trade and supply chain management is no easy task, but by creating a company focused on having partners that share a similar vision and follow the same principals you will make your life easier and most importantly, your clients lives.