Blog

How Proper Supply Chain Management Can Strengthen Your Business

The idea behind supply chain management is simple: You should know where your product is going and where it is coming from and save time and money along the way. Tracking your product from raw materials to the end customer is a daunting task, especially for smaller companies manufacturing complex goods, but the payoff is often tremendous. Here are some of the benefits you'll see once your business has a properly managed supply chain.

Maintain a Tight Shipping Schedule, Even Internationally

 

If you're importing or exporting your product internationally via freight or air, customs can present a huge hassle that holds up your entire supply chain. An important part of supply chain management is globally focused and can help you deal with customs, foreign trade regulations, shipment consolidation, and route management.

Save on Import and Distribution Costs

Supply chain management saves your product not only time in delivery but money as well. Scheduling and consolidating shipments saves you from making costly unnecessary deliveries, missing scheduled deliveries, and waiting on late shipments. You can then reinvest that saved money in the continued growth of your company.

Reach More Distributors Easily

Your final goal is still to get the product sold to as many customers as possible. Good supply chain management puts the product into more consumer hands faster and without any hiccups along the way. If it's possible to skip links in the supply chain and sell directly to end consumers, this will earn you more revenue than selling to a middleman. Either that, or you can sell your product to customers cheaper as a thanks for shopping with you directly. Many manufacturers use an e-commerce model to provide this opportunity to their customers.

Assess Quality/Determine Risk Factors

When you keep a close eye on your business' supply chain, it's easy to see where problems are coming from. Is one of your suppliers providing an inferior product? Is one of your suppliers always late to deliver product? You'll never know unless you manage your supply chain carefully. Replacing these problematic suppliers will help you increase the overall quality of your product and make deliveries on time more often.

Create an Inventory Buffer

Without proper supply chain management, it is often hard to decide how much inventory you should purchase and store for sale over a given time. Limitations like the amount of warehouse space available and holding costs make inventory management even more complicated. Applying an analytical lens to your supply chain will help you find out exactly how much inventory you should aim to have.

Supply chain management allows your company to save every step of the way, from buying raw materials or parts to selling to a wholesaler or direct to consumer. Your B2B sales and purchases will become more efficient, saving you time and money and offering convenience to your company. Being stuck without enough product or with deficient product is a thing of the past when you exercise good supply chain management.

For these and other supply chain management services specific to the apparel industry, request a consultation with The Apparel Logistics Group, Inc.

Posted: 8/24/2015 3:06:11 PM by Global Administrator | with 0 comments


Share this:Add to Delicious Add to Digg Add to StumbleUpon Add to Twitter Add to Reddit Add to Facebook
Trackback URL: http://apparellogisticsgroup.com/trackback/42226044-1bbb-4945-aee4-6601f1900997/Proper-Supply-Chain-Management.aspx

Comments
Blog post currently doesn't have any comments.
Leave comment Subscribe



 Security code