August 26, 2022 | Supply Chain Strategy Blogs
Efficient supply chain management is a critical element of any business, and companies must implement the right supply chain strategy to improve their operational efficiency. The current fluctuating global business environment necessitates an agile, efficient, and resilient supply chain, and businesses need greater end-to-end supply chain visibility that can provide actionable insights.
Supply chain efficiency means maximizing the existing resources to deliver a product to the end-user without delay and increasing costs. Supply chain management solutions ensure efficiency in processes, enhance product quality, mitigate risks or disruptions and drive business growth.
An oil and gas company reduced its stock wastage and achieved substantial cost savings by adopting intelligent supply chain software. It partnered with GEP to get real-time visibility updates and easy-to-interpret visual data on its inventory and warehousing through simple and intuitive dashboards.
Result: GEP NEXXE enhanced the efficiency of the company’s supply chain operations by streamlining the inventory and warehouse management processes, reducing redundancy by 40%, and minimizing the liabilities by 12%.
Here are a few best practices to improve supply chain efficiency:
Supply chain visibility aims to improve overall performance by ensuring that products are delivered on time and per quality standards.
Improving supply chain visibility lowers manufacturing costs by improving the efficiency of your production processes. It also reduces inventory levels and warehousing costs, resulting in increased profits.
Automating supply chain processes allows the business to scale and lower costs while enhancing customer experience. It can be applied to:
Supply chain efficiency metrics are used to measure supply chain performance and identify areas that need improvement. For example:
One of the critical metrics that businesses consider for evaluating supply chain performance is related to time. For example, companies assess on-time deliveries and receipts, the time required to process orders, and fulfilment.
Reducing costs across its value chain is an essential strategy for any business to improve efficiency and enhance its profits. However, companies must also be aware that lowering costs in one process could affect an increase elsewhere.
Performance metrics focused on improving the quality of products, their packaging, and customer-friendly returns are crucial for a memorable customer experience, competitive advantage and growth.
Businesses must assess their sustainable supply chain efficiency metrics in real-time since the wastes are also generated in real-time: greenhouse gas emissions, scrap, redundancy, and the like. By adopting innovative software, businesses can access real-time economic and environmental data to improve efficiency and reduce waste, sustainably lowering costs and enhancing profits.
Today’s businesses must develop an efficient and streamlined supply chain management model that can unlock innovative and effective ways to control costs and manage the disruptions of a constantly changing environment.
Supply chain efficiency metrics are used to measure supply chain performance. These include supply chain inventory turns, Supplier Performance Index (SPI), throughput, efficiency, and material quality index.
Automation is one of the best strategies to increase supply chain efficiency. It allows the business to scale and lower costs while enhancing customer experience.
Supply chain efficiency metrics are used for calculating supply chain efficiency because it allows the business to see how well it performs, which can help identify areas that need improvement.
An agile and resilient supply chain provides actionable insights through end-to-end visibility, ensuring rapid response to challenges and lowering costs across the extended chain.