Managing a supply chain is a complex and confusing process, and it’s also one that can make or break your business, so getting (and staying) on top of things is vital to your success. There’s a lot to consider here and all elements must be in harmony if you want everything to run smoothly. That’s why we’ve put together this list of tips for managing your supply chain to help your business thrive:
Keep On Top Of Your Paperwork
Nobody likes doing paperwork, but keeping on top of it is crucial to correctly managing any supply chain. You’ll need to be aware of all incoming and outgoing stock as well as funds, insurance and many other factors. This simply isn’t possible without good bookkeeping so put your admin hat on and get things set up properly to help streamline the process moving forward.
Consider Whether 3pl Could Be Right For Your Business
The next thing you’ll want to do is consider whether 3pl, or third party logistics, could be a good fit for your business and supply chain. 3pl providers exist to take a lot of stress off of a business owner’s shoulders and they’re a great resource for managing both your inbound and outbound products. If you prefer to keep a hands on approach that’s obviously perfectly acceptable, but if you feel that things could be handled better by someone else, don’t be afraid to delegate looking after your supply chain to a professional team.
Practice Social Procurement Where Possible
Social procurement is the process of sourcing goods which provide more value to society than their intrinsic worth. For example, say you purchase handmade goods from a local creator for your store. Not only are you getting the monetary value from these sales, but you’re also helping to keep a small business running, reducing your carbon footprint by sourcing locally and providing inspiration for other aspiring businesses in the area. This could lead to further opportunities to bring more goods from local creators into your supply chain which starts the cycle of benefits all over again.
Always Have A Plan B
We weren’t kidding when we said that managing a supply chain is complex and confusing, so having a plan b is always a good idea. No matter how secure you believe each element of your supply chain to be, there are far too many variables in business to say with absolute certainty that everything will run smoothly and in the event of a snag, you’re going to need a good backup if you don’t want your operations to be impacted.
Don’t Forget Reverse Logistics
Finally, your supply chain doesn’t just include stock that comes into your business for sale, it also encompasses products that may need to be returned, either for exchange or refund, or end of life recycling and processing if you offer this service. You’ll find this part of your logistics to be far more economical if you can arrange things such as transport and insurance with providers who are already part of your supply chain, so it’s certainly worth looking into all services that your partners can offer.
There are many moving parts in any business but few are as important as the mechanisms that get your stock on shelves and out the door. You can’t make a profit without a product after all and ensuring that everything runs smoothly can greatly increase the money that lands in your pocket. Follow the tips in this article to help ensure that your supply chain is as economical and sustainable as possible and you’ll be well on your way to thriving as a company.