Supply chain management involves various processes. In the business-to-business (B2B) model, the clientele consists of other businesses rather than individual consumers. B2B supply chain operations strive to optimize product availability. Within an eCommerce supply chain, tasks encompass planning, design, production, storage, inventory management, and order fulfillment.
While some companies control every aspect of their supply chain internally, combining manufacturing and distribution under one entity, many businesses engage in partnerships and outsource various supply chain stages.
Enhance company inventory
Monitor the volume of company-owned inventory. Retain only what is necessary, without excess. The expenses associated with inventory storage are significant. Holding costs may account for up to 60% of an item’s annual inventory value.
Incorporate demand prediction and forecasting to enhance company inventory management. Truck scales are an alternative method for efficient inventory control. These scales offer precise measurements to guide optimal storage quantities.
Automate B2B supply processes
Simplifying B2B integration for supply chain operations can enhance production efficiency and decrease product delivery delays. Automation may involve integrating robotic technology into production lines or adopting software to streamline tasks across various locations.
Optimizing procedures may encompass applying lean management strategies to reduce inefficient processes, streamlining organizational frameworks and operations, and minimizing paperwork when feasible.
Logistics
Logistics involves efficiently moving goods from one place to another, aiming for prompt delivery to meet customer needs. To prevent spoilage, special attention is required when transporting perishable items such as organic produce.
To highlight the importance of logistics, let’s consider the interconnected chains. Suppose you have an order of 50 tons of grapes destined for a popular supermarket’s warehouse. Unfortunately, one of your delivery vehicles breaks down en route, causing a three-hour delay. While nothing perished, the supermarket missed its weekend sale deadline that featured organic produce.
Build a strong rapport with your suppliers
Effective communication with your suppliers is crucial! Establishing a strong rapport with them allows for improved planning and helps prevent shortages, delays, and other issues in advance. A reliable supplier plays a key role in monitoring the work-in-process inventory phase (the transition of raw materials into finished goods), directly impacting the quality of your products and the speed at which you can replenish inventory.
Suppliers exhibiting inconsistency in delivering high-quality products can hinder your supply chain from the start. It’s vital to be discerning and remove suppliers that consistently cause problems or delays in your sourcing process.
Live reporting
Consider a scenario where an orders department operator must urgently contact the inventory or distribution department, but the designated employee is unavailable, leaving no other individual to assist.
This situation is unfavorable for the company. Integration of ERP software can aid in interconnecting departments, enabling employees to gain insight into areas beyond their direct responsibilities. Based on automatically collected current data, real-time reporting can enhance the company’s performance assessment, eliminating the need for time-consuming monthly or yearly evaluations.
Therefore, supply chain managers must react promptly and precisely to customer requirements and prioritize fulfillment. Supply chains have transcended linear structures and now function as intricate international ecosystems involving numerous stakeholders. Optimizing the supply chain to deliver a superior customer experience can have a transformative impact.
See also: Harnessing big data for precision and efficiency in supply chain management
