Now, with the global trade expanding at an incredible speed, it is only fitting that supply chain management solutions become an integral part of any successful business. In order to strengthen your position in the market and improve the performance of your business, effective supply chain management should be employed.
If your customers order your product or service, you should be able to provide them with it in a timely manner. End-to-end supply chains are considered to be the most accurate, prompt, and cost-effective, and if even one of those criteria is lacking, it might be time for supply chain optimization.
Considering the multiple supply chain options out there, supply chain optimization, inventory optimization, and inventory management can be a little challenging. Every business is different in terms of size, which means that every business will have different needs when it comes to product and material delivery.
Planning the supply chain for your business is vital in making the right decisions. So it is essential that you map out a supply chain network that will help run your business smoothly.
Here are some points that you should take note of before choosing a supply chain partner or a supply chain solution.
1. Retail vs. Manufacturing
The supply chain demands are different for retail or distribution businesses than for manufacturers. Retailers need to regularly stock the supply of finished goods at the retail stores while manufacturers require the delivery of raw materials for production. Retail business owners demand the supply chain to plan, manage and forecast. On the other hand, manufacturers have to take into account the machine efficiency, labor, and sourcing of raw material.
There are some businesses that need it all. They require the use of complex supply chains, also known as end-to-end supply chains. So typically, the type of supply chain depends on a number of factors, including the location of your customer.
2. Customer Location
In order to determine the right supply chain solution for you, the first step is to acknowledge your customer’s location. Does your customer come to receive your product or service, or do you deliver their order directly to them? Do you ship locally, internationally, or globally?
If your customers reside worldwide, you may need to consider global supply management and logistics. This solution makes sure that customs, local regulations, taxes, and freight forwarders are all part of the equation. You also need to make sure that you choose a cost and time-effective option. Airfreight forwarding services are much faster but at the same time can be expensive while, on the other hand, ocean freight is considerably cheaper but takes a lot of time. You need to figure out which factor is more important to you.
However, if your customer resides locally and will personally pick up their orders, management and inventory optimization are the most important in that case.
3. Lead Times
Lead time essentially represents the time it takes for the customer to receive their order from the time they place it. If you are promising customers with fast delivery, you will be needing high volumes of inventory and quick restocking. This is also important if you have an extended supplier lead time. It means that your trading partners take a lot of time to supply you with goods and services.
Although if you are dealing with frozen foods or fresh produce, you will need high inventory turnover and volumes so that you can easily replace any spoiled items.
You can reach out to Bee Logistics for any information about your supply chain or logistic needs.