Partner Article

Six Secrets to Supply Chain Success

In its most basic form, a supply chain is a system of processes, resources and people that allow a product or service to move from a supplier to the end customer. It is known to be potentially far more complex than that in large businesses, and is a supply and demand system. It is absolutely vital that the supply chain is effective for many businesses, and there are ways to make sure it operates at peak performance. These are six of the most important aspects of having a successful supply chain.

1. Do not have static stock –Having static stock means that the process is not in constant smooth operation, which in turn means something is taking up space where it does not need to be. Chains have to run smoothly to run at their best. Static stock costs money, because it takes up storage space.
1. Target action takers –Those who are required to respond to events and triggers must be fully aware of their role. This means that the entire process will be quicker, and can respond better to changes or problems. Individuals should be directly informed of any developments, rather than through a 3rdparty or by way of leaving a message for them to find.
1. Communicate and clarify –When demand or supply changes, it is vital that the information is relayed, and details are clarified. Again, this speeds up processes and prevents further issues arising. The faster problems are resolved, the lower the impact on profits.
1. Target individuals, not teams –Individual people should be responsible and accountable for processes to maintain accuracy. Teams are effective to get processes done, but each member’s role needs to be clearly defined. This means that problems can be identified and resolved more quickly.
1. Motivate staff –As with all businesses, a motivated workforce is the best workforce, and will make the system more effective. Happier staff are generally also motivated staff. This is something that applies to all businesses, and supply chains work far better when there is constant work and movement. There are many ways to improve morale and motivate staff.
1. Adapt to change –Supply and demand is, by nature, in constant fluctuation, so the supply chain model must be able to cope with and adapt to change. Ineffective changes cost money and cause the whole chain to slow down. On the other hand, swift changes mean that businesses can capitalise on developments and continue making money.
The most efficient supply chains in the world will understand these factors and use them to constantly make sure their system is working to the best of its ability. Supply chain recruitment companies are often used to make sure that those motivated action takers are the very best in the industry. After all, workers are the backbone of a supply chain, and if they are all of a high quality, then so is the chain. As the saying goes, a chain is only as strong as its weakest link.