Created on June 11, 2021
Efficient supply chain and logistics systems can make or break a business. Even a minor disruption in any of the supply chain processes can affect the entire distribution. Thanks to the technological advances that we have been able to tackle most of these disruptions before they impact the price of the product or customer experience.
To understand the significance of supply chain and logistics in any business, let’s take an example. You run out of your most-selling product and have ordered the same from your supplier. However, the supplier could not process the product due a delay in the “work-in-process” stage. Now what will happen? Customers who were visiting your store every now and then to check the availability of the product would move to some other store and make their purchase. Chances are also that you may lose those customers permanently.
This example makes one thing crystal clear, i.e. supply chain planning and management are both necessary for the smooth running of your business. Supply chain planning includes defining processes for different operational strategies. These processes incorporate getting finished goods from the manufacturer/self-manufacturing facility, paying attention to its storage, and dispatching orders to customers. Each of these operations require strategic planning to avoid interruptions, delays, and other obstacles that may disrupt the chain.
You can implement real-time supply chain data, establish real-time inventory management, and rely on various technological platforms for your supply chain planning and optimization. But before doing that, let’s understand how supply chain planning can boost your business and take it to the next level.
Minimizes the overall cost
Supply chain planning facilitates transparency during every stage and helps you figure out pain points that can be fixed beforehand. Also, it can assist you in order fulfilment, inventory storage, warehousing, and order dispatching and distribution. Managing all these operations efficiently and effortlessly would help you to reduce the overall supply chain cost.
Brings operational efficiency
Supply chain planning can increase operational efficiency and productivity. You can reduce manufacturing & transit times, reduce shipping costs, and keep a tab on your inventory.
Communication and collaboration is the key to maintaining transparency between the processes. With right planning and use of technology, you have control over the processes. You can easily check out what causes a problem and whom to communicate with to fix the issue.
Building strategies beforehand leads to timely completion of processes. To do so, you can rely on tech-enabled platforms. Technology can help with on-time completion of the supply chain processes without compromising accuracy. If you don’t want to invest in any of such platforms, then you can also opt for outsourcing your supply chain and logistics services to a 3PL partner.
Contributes to achieving customer satisfaction
With continuously rising competition and changing customers demands as well as expectations, it is not easy to achieve customer satisfaction. With right supply chain planning, you can forecast demands for the products and work on inventories accordingly. It would also help you to maintain safety stock. Besides, it can also help you to expand your customer reach without impacting the shipping cost.
By now, you must be having an idea of supply chain and logistics planning and its importance. To get customized supply chain and logistics management software for your business, reach out to Shipsy, a reliable SaaS-based software provider.