Supply chain management mistakes lead to poor quality, long lead times and unpredictable delivery schedules. This is why it is so important to invest in building a supply chain that will withstand changes in the manufacturing industry. Doing it right the first time costs a little more, but you won't have to go back and start from scratch a few years down the road. Follow these tips to build a supply chain that lasts.
If you currently rely on one supplier, find out how much it would cost to forge relationships with several suppliers in different locations. Working with one supplier leaves you vulnerable to problems with product quality and price. You'll also be left scrambling to find a replacement if your lone supplier goes out of business. Working with multiple suppliers increases your company's global reach and improves the efficiency of your supply chain.
Although manufacturing activity dipped slightly in September 2014, the manufacturing purchasing managers' index still came in at 57.5, a number indicating strong growth. As a result of this expansion, some manufacturing experts are now turning to online collaboration tools to facilitate supply chain management activities. If parts of your supply chain are located overseas, it's difficult to collaborate with traditional tools due to time zone differences. Online collaboration tools allow supply chain professionals to set certain conditions for their orders so overseas partners know how to handle any problems that arise during non-working hours.
A supply chain built for growth is also prepared to handle constantly changing shipping regulations. If your supply chain partners don't package and declare items properly, there is a chance you will not receive raw materials on time. This results in delayed production and missed deadlines. Consider using one of the many compliance management tools available for manufacturing companies. These tools help ensure you have the documents needed to clear customs in each destination country.
To remain competitive, you may even want to consider moving some of your manufacturing activities closer to where your customers live and work. It may cost slightly more to manufacture finished goods, but it gives your company the opportunity to offer faster delivery to customers. Moving your manufacturing closer to home may even save the company money on tariffs and transport costs. If you try this tactic, be sure to research the merits of each location before moving. The infrastructure in some countries may not be enough to support your company's supply chain activities.
If you want to remain competitive well into the future, you must establish a cost-effective supply chain today. Working with multiple suppliers, using online collaboration tools and moving your manufacturing activities closer to home are just some of the ways to improve logistics and ensure your supply chain meets the needs of customers all over the world.
Photo courtesy of Stuart Miles at FreeDigitalPhotos.net
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