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Is Your Supply Chain Holding You Back?

By 11th December 2014April 7th, 2022No Comments

 

Paul Millican

Posted by: Paul Millican

It goes without saying that the whole supply chain is chiefly important when it comes to getting a finished product or service to your hungry customers. It also goes without saying that whilst there are often significant and realisable savings to be made in this area of the business, any cost management strategies considered for your supply chain potentially come with their own risks, so it’s important to take note and consider very carefully.

Customers value speed and efficiency in their deliveries – and so do suppliers, as it often gives an opportunity to charge a premium which causes the associated costs to rise. At the end of the day, it’s either the business or its customers who end up paying the price. That’s why the key to supply chain savings lies in efficiency; making the process as streamlined and efficient as possible balancing out speed with quality and cost.

Of course when it comes to raising efficiency, it’s important to remain logical. Consider the various links and steps in the chain that can be removed or improved without sacrificing service and quality, or even replaced for a lower total cost such as a new supplier. Various articles across the internet will also tell you to consider faster routes and optimum shipping patterns – after all, that’s how the world’s biggest mail order companies have made themselves stand out from the rest.

On a more local basis, if your supply chain involves a company owned vehicle, consider the costs of the vehicle. If it’s being leased, is it on a manageable and flexible contract that suits your needs and that you’re happy with, or are you now tied in to something long-term, with only short-term benefits? Similarly, if its company owned, think about re-evaluating company vehicle policy, assessing fuel costs and minimising insurance costs.

Overall, saving on your supply chain can be beneficial in more ways than simply keeping costs low: greater efficiency and happy customers will ensure you have the competitive edge. But all of the above comes down to the single fact that the focus must be on making the whole supply chain efficient, rather than  simply hacking away at costs, otherwise you might see a sharp decline in quality and service.

To find out what other help there is in reducing your supply chain costs, simply get in touch for a consultation, or even a company health check.