There are two types of companies in the world – those that control their supply chains, and those that are subjected to them.
Supply chains are complex structures that take primary inputs and convert them into final products, with lots of processing and distribution along the way. You could argue that the supply chain is the most important element of the modern economy. It is the structure that makes just about everything else we do possible.
People who understand how to create wealth know the value of a properly structured supply chain. Keeping tabs on goods as they move in it is essential if you want a smooth and problem-free experience. And it’s also the key to keeping your costs low so that your business can make money.
So how do you master the supply chain? What techniques can you use to ensure that you get ahead of your rivals and secure proper input and output flows?
Rely On Predictive Technologies
In the past, companies in the supply chain would rely heavily on previous orders and demand levels to predict the level of sales coming down the pike. They would then ramp production accordingly, hoping that reality would match their expectations.
In normal times, this system worked quite well. But in 2020, it failed. The big shock of the pandemic was unprecedented, and many companies realised that the old way of doing things was putting them at a disadvantage.
Now, many of them are building a new kind of predictive system that relies on real-time data. The idea is to collect information from multiple information channels and then use this to come to more realistic scenarios.
Yes, it’s complicated. But it’s also highly effective. Predictive software is often much better at assimilating data than traditional supply chain managers.
Use More Efficient Labelling
Working out who owns what and when in the supply chain can be a challenge. Goods move around so often that it can be difficult to know precisely when ownership changes hands, and who owns specific equipment.
Metal labels offer a robust and durable solution to this problem. They can survive the harshest of distribution environments. And they are a permanent fixture of all your moving equipment, such as crates, dollies and comps.
Adopt A Profitability Model
Many firms in the supply chain operate a “capacity” model. The idea here is to ensure that they have the ability to meet orders that are likely to come through from clients.
The problem with this approach is that it doesn’t focus on profits. And that’s ultimately what businesses care about. All the planning goes into whether the operation can meet customer demands and not whether it is worth carrying them out.
If you’ve been involved in the supply chain yourself, you’ll know what this feels like. A client will place a last-minute order, forcing you to pay overtime and distribution surcharges. You know you’re spending more money, but you’re not sure if you’re profitable. And that’s a problem. Every transaction should always generate money for your enterprise.