Basic Tips for Supply Chain Optimization

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Basic Tips for Supply Chain Optimization

Basic Tips for Supply Chain Optimization

 

 

  • Automation and controls related to how many units you want to receive?
  • Integration into how many units you need to purchase?
  • Visibility to how much each of these units will cost you?

 

Basic Tips for Supply Chain Optimization

 

Tip #1: Integrates your entire P2P process into one vendor portal system

Ask yourself if your business can tell a difference between what you initially ordered, and what you got from your suppliers. The catch is to be fully aware of any differences at any given moment through the P2P process.

 

To do this, you will need the ability to compare both internal and external information available in one interface with real-time reporting. Providing a world-class supplier portal experience can also help develop vendor relations which will come in handy if there are issues with the orders.

 

On the other side, you should also thoroughly integrate the internal performance of each supplier on quality and delivery. As a result, of this analysis, you should be able to make a better future decision by focusing on suppliers who consistently deliver as promised and expected.

 

Tip #2: Focus your attention on the costs and the product details and let your system manage the ongoing score carding and tracking

It may seem an obvious point to emphasize, but it’s essential to know the fully burdened cost on each unit that you want to procure. If you can get your system aligned enough to manage the tracking and analytics you can free yourself for the more strategic functions.

 

Tip #3: Incorporate your demand planning into the applications

Try to use supply chain management techniques to make sure there is always inventory on hand to meet customer demand. Otherwise, you’re inevitably facing the least desirable scenario when a customer will order an item, which is out of stock.

 

Tip #4: Sell the items as soon as you get them

While it is important always to have enough inventory on hand to meet customer demand, it is also important not to order too much product as having excess inventories can be a company killer.

 

Basic Tips for Supply Chain Optimization

 

JoeFlynn

jflynn10@gmail.com

Joe Flynn is a Silicon Valley Entrepreneur who created Lavante, Inc. Lavante was started with the vision using Machine Learning, Natural Language Processing and advanced Data Extraction techniques to transform the traditionally manual-based Account Payable Recovery industry. Lavante Was acquired by PRGX Inc. in November 2017. Joe is currently working on a new venture using Artificial Intelligence and Machine learning to transform trade partner communications across the entire supply chain.

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