The productivity and profitability of a company depend on the efficiency of the supply chain.
From purchasing supplies to delivering the product to customers, there are a number of activities that make up the entire company’s supply chain. The efficiency of each of these activities allows the logistics and distribution to be excellent and, therefore, the organization to be competitive and achieve profitability.
This means ensuring that inputs and products reach the customer in perfect condition, on time, and at the lowest cost. This is the only way to achieve total customer satisfaction, which can be a differentiator in a very competitive industry.
How is efficiency achieved?
Among the influencing factors are:
- Communication and collaboration. All chain participants must share information in a timely manner to better coordinate their efforts.
- A system must be implemented to allow participants to know in real-time which stage the products are located.
- Each phase must be understood as a link in the chain that must be precisely interconnected with the remaining stages.
- The process must be in line with the customer’s needs to provide better service.
- Constant evaluation. Establishing metrics to measure results and benchmarks against the competition will help identify areas of opportunity and correct mistakes.
What are the goals to be accomplished?
The efficient functioning of the supply chain is the basis of a company’s productivity and competitiveness. To fulfill what is required, it is important to achieve these basic objectives:
- Reducing costs and maximizing results is the key to the efficient management of available resources.
- Each link in the chain must function perfectly and it is essential that experts participate in improving its effectiveness.
- Quick response to market variability and customer needs will ensure your satisfaction and competitive advantage.
- Monitoring what happens throughout the process helps to detect failures and intervene in time.
- Coherence and unification. The objectives of each phase must be interrelated and integrated so that the process flows smoothly.
- Participants must be empowered to make timely decisions in order to be able to set performance goals.
- The importance of the ecological footprint that the logistics process produces and the way to reduce and compensate for it must not be ignored.
If you analyze your supply chain according to these parameters and objectives, you can assess whether it is running efficiently.
Don’t just focus on finding the improvements, but also document what is being done to replicate it and achieve the excellence that sets you apart from the competition.
One of Sooner Logistics’ purposes is to support you in achieving an efficient supply chain through comprehensive transport, distribution, and storage services, among other solutions, managed through an Intelligence Center that will help you to control, monitor, and optimize your logistics resources to reduce costs and fully serve your customers. Click Here to get in touch with us.