The Art Of Managing Your Supply Chain

The Art Of Managing Your Supply Chain

Supply management is an umbrella term covering the entire set of technological equipment, payment systems and internal policies connecting the distributers and the clients. When the supply chain performs at optimal capacity, the company is able to maximize profits by decreasing delivery times, ensure customer satisfaction, and minimize the processing duration of the orders.

An added benefit is that an efficient supply chain that features a comprehensive POS system permits more control over the inventory. Finally, profit losses stemming from spoilage or moral depreciation of the products are kept to a minimum. Let’s find out how you can enhance supply management performance in five easy steps.

1. Managing the distribution network

The distribution network represents the pivotal element in the framework of your company’s operations. In other words, it has an impact on every other department, from marketing and sales to the personnel monitoring of the deliveries. There are two approaches in terms of increasing the performance of the distribution network, namely the holistic strategy and the cluster examination.

The former implies reviewing the instrumental cogs of the system and devising a method to synchronize them, like implementing a POS system with a comprehensive list of tracking and monitoring features. Conversely, the cluster examination relies on utilizing graphics and charts to determine which sectors require optimization.

2. Update your distribution strategies

This step implies evaluating key components of your operations, such as the warehouses where the merchandize is stored, the production centers where your goods come from, the clientele and audience, etc. Setting clear-cut objectives for the distribution department and implementing practices to help them achieve those objects is the best way to go about it. Don’t forget to analyze how these goals match against your overall business strategies.

3. Keep track of the cash flow

The cash flow constitutes an excellent indicator for the performance of your business, which is why you should consider implementing a monitoring technology to track the incoming funds and outgoing expenditures for every department. To put it simply, a complex POS system permits you to learn crucial data and figure out when you need to pay, whom you need to pay and how frequently you need to pay in order to keep the distribution network up and running.

4. Implement better communication conduits

The interdepartmental communications conduits are essential for your operations, and so are the conduits between your company and business partners. When they’re up and running at maximum capacity, they allow you to learn about and address every issue before it escalates and disrupts your distribution processes. Figure out who should be informed regarding a shortage of supplies or merchandize in every department, and to whom in the upper management they need to report.

5. Monitor the status of the inventory

Specialized monitoring software or a component in a comprehensive POS system would help immensely in terms of knowing the exact status of your business’ inventory at all times. It can alert you regarding merchandize that was lost, damaged or stolen, allow you to know how far along the supply chain a product is, find out the quality of raw materials, etc. Armed with this information, you can adapt your business strategies in timely manner to overcome any impasse.