4 Steps for Improving Supply Chain Management

Competitive advantage is elusive for many companies. They struggle to identify the core competencies that can make them successful and work to find ways to use things at which they are really good to turn a profit. On top of that, many companies have difficulties coordinating what they do best with their supply chain partners, leading to overlaps and inefficiencies that can sink their bottom line.

According to John T. Mentzer , Executive Director of Integrated Value Chain Forums at University of Tennessee, “Many companies actually achieve competitive advantage by leveraging the management of their supply chains.”

So how do you improve your supply chain management?

Know Your Competencies

To improve your supply chain management, you have to start out by knowing your company’s core competencies. This is more than identifying what your company can do better than anyone else. You have to find what your company can do better than anyone else and find a way to make money from it. Within the supply chain, it comes down to identifying how much an activity costs you, finding out how much it would cost a third-party to do it, and determining the monetary risk of having someone else in charge of that element. While you never want to outsource your core competencies, there is likely some aspect of your supply chain that you could hire out.

Improve Information

You can also improve your supply chain management by improving the quality and variety of the information collected. The right supply chain management software will give you precise inventory control and improved distribution. This could include everything from adding RFID scanners to warehouse automation. The important thing is to find ways to make sure the information is correct and easily accessible by all parties who may need it.

Integrate the Supply Chain

The larger your company, the more people involved, and the more room for miscommunication. The same way that you need to improve information within your own supply chain, you also need to find ways to integrate your complete supply chain – third-party suppliers included. To do this, you can work backwards, adopting the same systems that other members in your supply chain use, or you could opt to hire a third-party who can offer supply chain management services.

Hire a Professional

It is really difficult to evaluate your own capabilities. You might think your company does something really well, only to find that it would be cheaper and more effective if you outsourced those tasks. The only way to know the difference is to pull in an outsider. Hiring a firm like The Apparel Logistics Group (TALG) can help you see your company’s operations in a more objective light and TALG's expertise in managing supply chains allows us to work with you to develop solutions that meet your company’s unique needs.

If you are ready to improve your supply chain and harness your company’s competitive advantage, give The Apparel Logistics Group a call. We are experienced in both domestic and international apparel logistics and can help you develop supply chain management solutions that are right for your business. Contact us today for a free consultation!

Posted: 9/2/2015 4:46:47 PM by Global Administrator | with 0 comments

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