Cargo Ship at the Port

Tips for Effective Supply Chain Management

Companies or their logistics and supply chain partners (such as AIT TAHIPO LLC) engage in supply chain management to design and operate supply chains in the most effective and efficient manner feasible.

 

The concept of supply chain management is based on a single premise: almost every product in the world eventually reaches a customer.

 

The more steps in a logistics plan there are, the more efficient your supply chain process must be.

 

Here are some pointers to help you manage your supply chain more successfully.

Choose the right suppliers

Make your requirements clear to your suppliers from the outset. Aquila chooses suppliers who adhere to established standards for playground equipment safety performance, are the right size to supply the company’s needs, and produce consistent quality.

Have multiple suppliers for each product

Never rely on just one supplier for each product. Disasters, like fires or floods, can occur and prevent suppliers from delivering. With more than one supplier per product, you are always prepared for the worst-case scenario.

Always Have a Contingency Plan

Your logistics department, or provider, should have contingencies for every element of your plan if something goes wrong. You should also know when to stick with your original plan rather than switching to your backup. can gear up and are fully aware of what to expect from you.

 

You don’t want to surprise your suppliers. Keep in constant touch with them.  This ongoing dialogue helps build loyalty. “They love it because they can gear up and are fully aware of what to expect from us.

Develop a Supply Chain Strategy

Although it seems like common sense, few businesses actually develop a written supply chain strategy. Effective supply chain and logistics management are all in the planning. The fewer decisions that need to be made on the fly during the transportation process the better.

Although a solid plan won’t cover every circumstance, it will limit the number of decisions that need to be made. A good logistics provider will plan well ahead to eliminate supply chain disruptions as best they can.

Leverage New Technology

Technology that exists today plays a major role in strengthening supply chains. The most successful supply chains incorporate technology such as warehouse management systems (WMS) and transportation management systems (TMS) to automate processes.

 

By speeding up decision-making, technology-driven supply chains play a large role in helping companies gain a competitive advantage.

Learn From Your Mistakes

Depending on the size and complexity of your company, poor supply chain management can cost your company hundreds of thousands of dollars each year.

 

The most important thing you can do when optimizing your supply chain is to identify your mistakes. As a result, you can shift your focus on putting systems in place to ensure the same mistakes don’t happen again.