Want to know if supply chain management services are worth investing in?
Supply chains are becoming more and more complex. This is making a data-driven approach to supply chain management critical. Effectively optimizing your supply chain can completely innovate your business.
And if you keep reading, you’ll see the 7 key benefits of managing your supply chain!
The sharing of information is a massive challenge for companies. According to a recent study by Oracle, 76% of companies don’t have a sufficient automated way of sharing information across the supply chain. And because of this, 50% of companies say broken information results in a loss of sales.
Professional supply chain management companies eliminate all of the bottlenecks in your company and enable a simple, and effortless flow of information within the supply chain.
Improved Quality Control
Companies that have greater control over both their direct suppliers and their suppliers’ suppliers experience hugely improved quality control. Integrating a minimum quality criterion can help your suppliers find and work with secondary suppliers that match the requirements.
A supply chain management company will monitor key performance indicators like:
- On-time delivery
- Issues at suppliers
- Product quality
- Complaint resolution time
- Findings from supplier assessments
With this performance data, you can work with the highest-performing suppliers to adhere to a strict level of quality control.
Higher Efficiency Rate
Having access to the real-time data that is provided to you by your supply chain management company enables you to integrate backup plans that prevent delays in your business. Not having the necessary data will mean you won’t have enough time to initiate a plan B if things go wrong. This will lead to issues like running out of stock etc.
Keeping Up With Demand
With a professional supply chain management company by your side, you will have real-time data that will keep you up-to-date with accurate sales prediction and product demand so that you can quickly respond to a change in market conditions. This allows you to avoid being caught with no stock and very unhappy customers.
According to recent reports, the costs of freight transportation have risen by 7%, and private trucking costs have increased by 9.5%. Because of these rising costs, optimizing your shipping has become a priority for most companies.
Being able to quickly find out the most cost-efficient and reliable shipping methods for both small and large orders will help you get orders out to customers faster while reducing your costs.
Reduced Overhead Costs
Thanks to more accurate sales predictions, you can quickly reduce any overheads due to storing difficult-to-sell stock by housing fewer low-velocity stock to create room for higher-velocity, more revenue generating stock. You can also reduce warehouse fulfillment costs by optimizing the layout of your warehouse and implementing powerful automation solutions.
Improved Cash Flow
One of the best benefits of supply chain management services is the improved cash flow. With effective supply chain management, you’ll be able to make smarter decisions, choose the correct suppliers and quickly predict and react to market and demand changes.
With supply chain management, you’ll experience fewer disruptions and more happy customers!
Want More Information on Supply Chain Management Services?
We understand the importance of improving your supply chain management. That’s why we hope this article has given you some clear-cut reasons why you should outsource supply chain management and work with the best supply chain management services providers available.
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