Top 5 Ways To Increase Supply Chain Performance

Top 5 Ways to Increase Supply Chain Performance

by Alan Jackson — 3 years ago in Supply Chain Management 5 min. read

The supply chain is a crucial part of your inventory management and overall business strategy. An efficient supply chain helps your business save money and improve customer satisfaction by reducing wait times for in-demand products. In short, it gives you a real competitive advantage against other companies in your industry.

On the flip side, an ineffective supply chain can be a huge drain on your resources, so it’s important to strategically plan so your supply chain is as lean and cost-effective as possible.

Here are some management tips to help you maximize performance from your suppliers, logistics providers  and in-house team.

1. Evaluate your suppliers

The supply chain process starts with your providers, so the first step to improving your supply chain needs to be to assess your provider relationships.


A provider –company proprietor without great communication is doomed to fail. Can they answer your mails in a suitable quantity of time? Are you currently able to comprehend each other easily? Or do you squander precious time re-explaining exactly the exact same thing repeatedly?

Excellent providers are responsive. The very last thing you need is to wind up taking a loss on unsellable products simply because your vendor didn’t react immediately to a critical design change


Providers absolutely have to be reliable. If your provider regularly shorts you in your buy requests, ships orders overdue, or in any way fails to follow through on their promises, it is likely to negatively impact your supply chain.

If that’s the circumstance, a fast way to enhance your supply chain is to cut ties with providers who have shown themselves to be obligations. Try checking out provider listings on websites such as Alibaba to discover an alternate manufacturer that could satisfy your requirements.


If you would like to make the most of your supply chain, you need to think about how quickly your providers can complete your orders. If a provider takes weeks to finish production in your purchase, you need to reorder things earlier to prevent stock outs–that brings extra risk if your requirement planning winds up becoming off.

To optimize supply chain efficiency, think about how fast that your providers can send your orders as soon as they’re finished.

If you are operating a lean supply chain in which you are ordering only tiny quantities at one time, it might not be efficient to run a worldwide supply chain using a provider halfway around the world.

A nearer neighborhood vendor could possibly be a better choice just because you do not need to be concerned about long lead times in case your requirement planning is away.
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2. Analyze your supply chain strategy

Successful distribution chains are lean, cost-efficient, and reliable. Therefore, in the event that you would like to make certain your supply chain prices remain low while your procedure stays dependable, reevaluate your supply chain plan and aims to be certain you’re using the very best possible strategy for your company.

Here are some questions to consider:

  • Is my supply chain strategy appropriate for my business type?

Ensure your strategy suits your business model. For instance, online-just businesses might need to consider an outsourcing strategy for their supply chain. In the interim, B2B organizations may see supply chain enhancements by changing to a discount model.

  • Am I utilizing the outsider logistics (3PL) suppliers accessible to me?

Assess your alternatives and ensure you’re not missing out on any arrangements. In the event that your provider likes to utilize a particular 3PL supplier yet that supplier is more costly, work with your provider to check whether they’d transport their products utilizing an alternate logistics supplier.

  • Is my supply chain strategy resilient?

In the event that 2020’s COVID-19 pandemic demonstrated anything, it’s the way crushing supply chain disruption can be to a developing business.

Consider improving your supply chain versatility by cooperating with reinforcement sellers and logistics organizations that can assume control over your provider or delivery needs if necessary. That way, you’re ensured if unforeseen occasions disrupt your supply chain model.
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3. Use demand planning

If you are not yet using historical demand information to predict customer demand for your products, applying requirement preparation can enhance your supply chain efficiency.

By way of instance, if you are aware your red, white, and blue sunglasses market finest in June, July, and November, operate with your supply chain partners to make sure you will have sufficient supply to satisfy demand.

Excellent supply chain management also entails planning round your providers and other aspects, like place. As an example, if you are working with a Chinese seller, you might have to organize your buy order time to adapt to your two-week holiday year around Chinese New Year.

This ensures you receive your merchandise delivered punctually and enables you reduce supply chain costs (because you do not need to pay extra storage charges while your goods sit on a pier throughout the sea ).
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4. Eliminate data silos

A information silo is a scenario where only 1 user or group has access to data that is required across multiple groups or users. And information silos are bad news for any company seeking to run a lean supply chain.

If your need planner, procurement representative, and supply chain manager do not have access to the very same data, it may result in expensive slip-ups (such as double ordering).

Employing a supply chain control system (as well as an stock management system ) provides increased supply chain visibility across your entire company. If you truly wish to, you may also open it up into your whole supply chain, such as 3PL providers.

This increased visibility helps minimize errors and easy out a great deal of kinks on your distribution chain operation–that ultimately means greater cost savings to your organization.

5. Monitor your system

Simply because something works nicely now does not mean it is likely to work well everywhere. Smart distribution chain professionals understand that this and keep tabs on crucial elements of the supply chain to spot weak points.

Inventory management solutions which have both logistics and supplier management systems are a fantastic method to rapidly identify problem areas on your distribution chain efficiency.

At least one time per quarter, have a look at your latest supply chain functionality. Attempt to spot any emerging patterns.

Has your company been undergoing an uptick in late dispatch, unfulfilled orders, goods, or inconsistent quality? If that’s the case, attempt to recognize the origin of these issues on your own system –if it is a provider, a 3PL provider or improper warehouse managing.

As soon as you identify where your issues are coming from, you are able to establish the most appropriate plan of action to determine supply chain advancement.

That may mean changing to another seller, trying a new delivery agency, or implementing greater training for warehouse workers.
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The takeaway

If you’re currently unsatisfied with your supply chain performance, there is hope. Focusing on finding reliable suppliers and logistics providers, building supply chain sustainability, and facilitating the flow of information across your business can go a long way toward cutting costs and improving customer satisfaction. Just remember: it’s a process, and continuous improvement is the ultimate goal.

Alan Jackson

Alan is content editor manager of The Next Tech. He loves to share his technology knowledge with write blog and article. Besides this, He is fond of reading books, writing short stories, EDM music and football lover.

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