In this fast-paced globalization and evolving customer expectations – the pressure on the supply chain is increasing rapidly. This leads the business to invest smartly in the processes and reinvent the chain to manage the mitigating risks.
So, if you’re ready to exploit new opportunities and looking for the right strategies to access the fastest growth and revenue of the supply chain, this blog will help you with it.
Here are seven proven and successful strategies that will transform your supply chain for 2025 needs:
1. Optimize Company-Owned Inventory
To begin with, the first thing you need to consider is checking the quantity of the company-owned inventory. Plan your inventory and keep only what you need, nothing additional. The cost of holding and storing inventory is quite high in many regions.
If your inventory is holding costs, it could represent almost 60 percent of an item’s cost held in inventory for one year. Therefore, demand planning and stock forecasting should be included to optimize company-owned inventory.
Another factor that you can consider in optimizing your inventory is using truck scales for effective management. The scales provide accurate measurements to help you determine the right quantity of inventory to stock in your company-owned set-up. This way, you can save costs on holding additional supplies and manage the essential ones smartly.
2. Improve Distribution Network
When it comes to improving the distribution, two main approaches streamline the distribution network:
-
Cluster Approach
This approach includes group charts, graphs, and similar documents together. This will help in observing the processes for any specific company function.
-
Holistic Approach
This approach involves reviewing the essential components of the distribution network. Moreover, it focuses on understanding how the components work in tandem to improve the process.
3. Design a Supply Chain Council
Another effective strategy that will help in improving the supply chain for your organization is having a governing council in operation. By setting up a governing council that offers a clear strategy for functionality and efficiency.
The council aims to give directions and align the supply chain strategy with the core goals to reach a maximum increase in revenue. Moreover, the council helps in removing barriers within the organization.
This will improve the business’s cross-functional communication. It creates opportunities for leaders to provide effective supply chain management in future projects.
4. Embrace Digital Twin Technology
There is nothing more challenging for the organization than handling tasks manually. This is one of the loopholes that raise human error, delay, and slow down productivity in the process. Instead, utilizing technology is one of the effective and proven ways to enhance the supply chain.
However, before you invest in new technologies, you should carefully assess the area where technology could improve the process. For example, if you want to improve inventory management or upgrade transportation, investing in digital twin technology would be the best decision you can make.
By creating the digital plan of your inventory, you can better get access to the insights. If you are not sure what digital twin technology is, worry not. You can simply explore everything about digital twins online and plan your investment in it.
5. Build Healthy Supplier Relationships
When it comes to the success of the supply chain, the relationship with the suppliers is the most affected. Therefore, organizations need to cultivate and maintain supplier relationships on an ongoing basis. Even if the deal is finalized, retain the connection to meet future needs.
You can focus on forming strategies to maintain the relationship. For example, you can set goals for meaningful performance, accept quality products, and manage conflict resolution in your organization.
6. Review Procedures Regularly
When improving the supply chain process for your organization, the supply chain council must review policies and procedures to ensure efficiency and compliance. This will help in eliminating the bottlenecks in the supply chain process.
This way, you can streamline the operations and mitigate the risks of theft and fraud. Moreover, regular reviews of the process will help identify different risk elements and estimate their financial impact.
7. Establish Green Initiatives
Last but not least, by minimizing the carbon footprint of your supply chain, you can smooth out the process. In fact, in your organization, supply chain and logistics must become sustainable and socially responsible.
Moreover, consider the environmental impact when you choose a supplier for your business. You can create a measurable framework of procedures and policies that promote sustainability in the process. This way, you can work with suppliers that are invested in good environmental practices.
Final Words
Every business operates differently. Therefore, you will never find one-size-fits-all strategies for improvement in the process. However, there is a series of proven strategies that can help transform your supply chain to increase revenue successfully.
So, if you already have some of the strategies in place, incorporating the remaining will add immense value to the supply chain process.
