Are you aware that supply chain management could be vital to the growth of your business and could be the difference between a struggling and a thriving business depending the efficiency of the system in place? Well, according to Invespcro, 79% of companies that have put efficient supply chain management systems in place outperform their peers within the same industry. Moreover, companies with high-performing supply chains achieve three times faster cash to cash cycles and have lower supply chain costs.
In other words, every business must ensure that their supply chain management process serves to generate more revenue, reduce cost and increase operational efficiency in the organization. It is a strategic alignment of end to end business process designed to achieve economic and value as well as win competitive advantage over business rivals. As a matter of fact, 30% of business leaders identify speed, accuracy of order fulfillment and personalization as top priorities in supply chain processes.
What many companies don’t notice is that a large chunk of their total operational costs are related to inefficient supply chain process, more specifically those business that outsource manufacturing. More than two thirds (63%) don’t monitor their supply chain management efficiencies such as:
- Logistical costs
- Costs associated with quality management issues
- Costs associated with managing suppliers
- Costs associated with late fulfillment of orders or ineffective and inefficient delivery
According to Flexis, fewer than 30% of companies think their supply chain process is effective. This is actually a startlingly low figure given the fact that a highly effective supply chain is supposed to come with immense benefits. It is time for companies to start prioritizing things like effective supply chain process that will make the collaborative process effective. Businesses now, more than ever, need to prioritize connectivity and flexibility across teams, people, systems and partners to make a more cohesive development and execution process.
Efficient supply chain has a direct impact on organization’s performance
Studies have shown that more than 57% of businesses have poor visibility on their supply chain process. This basically means that majority of businesses are yet to figure out how to streamline their SCM’s strategic plan. They are yet to understand that better SCM results in better businesses 90% of the time. With customers becoming more demanding, oversensitive and over expectant, businesses have little room for inefficiencies. Customers simply want retailers to stock what they want at competitive pricing or they will simply move on to more competitive suppliers. If a customer orders something online, they expect the item to be delivered on time and in exact quality they expect. As such, there should be easy return policy. In return, business must put systems in place to ensure they get prompt supplies and reliable services from manufactures and service providers to make it work.
Read more: Analytics Will Revolutionize Supply Chains