Increasing supply chain efficiency

Making your supply chain work as well as possible for your business is important for success. Supply chain efficiency involves getting the most out of your resources. In doing so, your company will be potentially more sustainable and profitable in the long run.

The supply chain process of your business is what customers depend on. An efficient system gets products to them faster, which improves customer satisfaction. There were 5.6 million businesses in the UK at the beginning of 2021. This means you’ll likely have a range of competitors. Whoever’s supply chain is the most efficient will likely gain the most customers.

Ensure it’s your business by following these tips and increasing your supply chain efficiency.

Assessing your performance

There are three key supply chain performance metrics. These can be used to see where improvement is needed. They include:

  • Time – This can include delivery, order processing and order fulfilment times.
  • Cost – Inventory carrying costs, which show the cost of holding items in a warehouse, can make up part of this. It can be used to measure and identify new ways to improve profitability.
  • Quality – How satisfied are your customers? Assess areas that can improve this in your supply chain.

How can you boost supply chain efficiency?

Now that you know what areas you need to improve to streamline your supply process, you’ll need to know how to go about it. Here are a few examples of how you can do this:

Take steps to protect your fleet

Your fleet is the driving force behind your delivery. They will be responsible for transporting your products up and down the country.

Depending on your transportation method, there are different things to keep in mind. For HGV transportation, you must learn how to keep your vehicles roadworthy. This will reduce the risk of breakdowns, helping to ensure your products arrive on time.

If you use trains to deliver your products, you’ll need rail insurance. With this, you’ll cover your goods during transit from fire or theft. This can then help you recover lost costs and send out replacement items to customers.

Automate processes

When you rely on humans to process orders and complete admin tasks, errors can occur. Instead, automate your systems and process more orders accurately. You will also benefit from reduced overheads.

Choose the right suppliers

For a smooth supply chain, you’ll need suppliers you can depend on. This means choosing reliable suppliers who can provide you with materials on time. When you have this in place, your business shouldn’t fall behind on orders. This will keep your customers happy.

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