Supply Chain Management is a process that efficiently manages the flow of goods and services between businesses and locations to ensure end to end order fulfillment from point of origin to point of consumption.
As any successful business owner can tell you, SCM is extremely crucial to run operations smoothly. It establishes a certain level of communication and relationship with suppliers that helps in avoiding delays in shipments and errors in logistics. Over the years, the processes of efficient supply chain management have been evolving and today, we’ll give you a glimpse of what an idle supply chain looks like in the 21st century.
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An efficient SCM system gives you better negotiating power to get the best rates and products in the shortest time possible. In turn, it also reduces inventory costs and improves the overall planning and efficiency of your operations. Let’s take a look at how a company can achieve this:
Precision in Planning
A sound supply chain management system is one with tools to help you sense demand and accordingly stock inventory in order to drive revenue and growth. Using advanced technology, Supplymint predicts demand with precision. It assesses varied data to accurately forecast demand, which can then be used to maintain and store optimum inventory and avoid costs associated with surpluses. Demand planning is done by looking at historical data, projected sales, market conditions and other factors, all of which are considered by Supplymint while planning demand. And like most supply chain executives and managers know, demand planning lays the foundation of subsequent supply chain processes. This is why a company should look for ways to ensure precision in planning.
Also Read: How Machine Learning Will Transform Supply Chain Management
Trustworthy Vendors
One cannot emphasize enough on the importance of finding the right vendors. This decision is not easy for most companies to make and they often choose vendors that can provide them products in the minimum cost. But certainly, that is not the only factor to consider. What’s more important is that they are reliable and allow you to fulfil your responsibility in delivering best quality to your customers. Businesses must maintain high standards for quality procurement, customer-care services, and more that we’ve mentioned below.
Better Collaboration
A lot of companies find it challenging to find a way to flow information. But with advancements in technology, automation became a solution to cover up this problem. Even then, a majority of companies today lack a system that allows automated flow of information across the supply chain and to help find a solution for that, our solution has been designed in a way that carries out information seamlessly. Just as half of companies say that fragmented information results in lost sales opportunities, we make sure that our integrated software solution removes bottlenecks and allows for sharing of information, providing a big-picture view of the supply chain from end to end.
Reduced Overhead Costs
With more accurate demand predictions, companies can now reduce the overhead costs associated with storing slow-moving inventory by stocking less low-velocity inventory to make room for higher-velocity, revenue-producing inventory. Adopting the right automation solution like Supplymint will help companies in improving productivity and implementing a better inventory management system.
Leveraging New Technologies
Recommended Read: Future Tech in the Supply Chain Industry
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