In business, the more efficient you can get a process, the better it is. The right amount of work goes into a process as simple and quick as possible to get more value out. It applies to money, to how you manage workflow and to everything else. That includes your supply chain automation. You might not initially see the benefit, but once you see the savings you make in streamlining your supply chain automation, you’ll realize how essential it is
The Ins
One of the most important decisions is how you get the material you’re going to work with. Making the right choice of supplier is essential. Don’t go for those who are generic and make promises that sound outlandish to you. You can meet specific business industry specialists at trade shows and business events. Go for the ones who offer transparency, including into their own supply line. If they don’t tell you the potential risks to their own supply or who provides it, then you can’t plan ahead for if they fail you. How much you order in is just as important. Overspending on materials is costly, even if it feels optimistic. Know the demand and know how it factors into your finances, including taking the cost of sale into account. Get more informed with how much you need and stick to it until the situation changes.
The in-betweens
There are a lot of steps you can use to make your own manufacturing and processing a lot more effective too. You don’t necessarily have to go too deep cost-wise into all kinds of fancy new systems. The older methods like using a tube conveyor and other line assembly tools still work just as well. So long as you’re not wasting your and your staff’s time forcing them to transport goods from one place to the next manually. Keep any assembly or production lines as short as possible, too. You don’t want any obsolete equipment in the way or too much distance from one step of the line to the next. The quicker everything moves, the better.
The outs
If you want to be more cost effective, then getting your inventory out of there as soon as possible as the next step in the process. Holding onto inventory costs you more the longer you do it. After all, you have to pay for the facilities holding them. You’re paying even more if those goods are perishable and you have to keep them refrigerated. A quicker fulfillment and delivery service is also a lot better for your customers. If you’re using your own transport drivers, you can ensure they’re using the best routes and driving methods. GPS trackers are great tools for this. If you’re unable to put that much care into your delivery, it might be worth considering outsourcing it to someone who can help you get more effective.
Your business supply chain needs to flow like a river. The more it starts and stops, the worse it works out for you. Better knowledge of your demand, of your suppliers, your processes, and your delivery is what’s necessary to work out those kinks in the chain.
