Best Practices To Improve Supply Chains Management Process

Due to business growth, the supply chains at most organizations have become longer as the direct result of adding more business, expanding its market, more new products, more new suppliers, more factories, more market segments.

The initial supply chain model should be able to keep up with the changes and improve its performance metrics, Today I want to share about supply chain management best practices that you can implement in your company that could help you improve your supply chains performance metrics.



1. You can get a better understanding of market requirements by incorporating new product introduction, new form of promotion, budget projections even sales forecasts into the demand planning process, this way you can have a consensus to balance between demand and supply.

2. You can create a demand and sales planning and maps your supply chain to demand, this way you can be sure to meet all the demands and maintain your customer loyalty. By mapping these 2 aspects, you can also have more visibility on your sales distribution through out your entire market.

3. When the company is growing and expanding its market such as building new plants in another countries, dealing with offshore suppliers, then a manual process management could give you a hard time and would not benefit your business in a long run so what you need to do is to Cut down your Export and import management process, eliminate processes that could make your cost became higher, automate certain process that could improve the speed and performance of your business.

4. Reorganize your supply base categories by eliminating certain suppliers, map all the small suppliers, see if their products can also be supplied by the bigger suppliers, eliminate redundant suppliers based on their products. Now you can focus on a group of suppliers and try to gain volume discounts.

5. Last but not least, you can improve your Supply Chains performance by implementing and integrated system such as SAP ERP, you can evaluate the best practice of supply chain management from the ERP vendors and incorporate it into your organization.

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