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Innovation versus Status Quo: How to Develop a Powerhouse Supply Chain

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In order to have a lean supply chain, you need to have efficient and effective processes.  Of which are consistent for a long period of time.  This leaves very little room for innovation if you think about it.  But is there a way to encompass both efficiency and innovation for a powerhouse supply chain??

The most efficient supply chain is usually the product of tried-and-true processes.  Reliable vendors, consistent pricing, predictable shipping, and open communication.  Over time, many of your suppliers can be like your best friend and responsive with a simple phone call.  There is absolutely nothing wrong with this scenario, as long as you are optimizing profits and controlling the costs of doing business.  Although, adding innovation could turn your efficient, status quo supply chain into a driving force that takes your business to the next level.

The best innovation to add to supply chain management is the power of visibility.  Using enterprise resource planning (ERP) software, such as Microsoft Dynamics® GP, can help you map out your supply chain and provide the details necessary to become more productive and profitable.  Details like who can provide certain inventory in a timely manner and within budget restrains can impact the cost of maintaining inventory.  Replenishing inventory with shorter quantities, but in a faster timeframe, could protect cash flow and reduce the risk of getting stuck with obsolete inventory.  Although it is usually more cost-effective to order inventory in bulk, it doesn’t do you any good if you have excess inventory when consumer demand changes.

Visibility into your supply chain will also give you the flexibility to change suppliers without risking customer satisfaction.  If you have ever experienced a supplier that was hit by extreme weather, product recalls, or shipping problems, then you know the real headaches that can result from getting products delivered late, or worse yet, not at all.  The faster you can switch gears and order inventory from another supplier, the greater your chance to get products to your customers as promised.  Optimizing supply chain visibility will give you confidence that your operations can still move forward by finding a supplemental supplier when needed.

It is important to have an efficient supply chain, but you don’t have to stop there.  Use your ERP software solution to gain more visibility into your supply chain.  The ability to react faster to market changes, supplier problems, and other situations will strengthen your business and position you for growth.  Added visibility into your supply chain is just the innovation you need to change your status quo supply chain into a powerhouse.  Contact MIBAR.net for more information about optimizing your supply chain and driving business growth: http://www.mibar.net/Contact-Us.aspx.

 

By MIBAR.net, Long Island, New York, Microsoft Dynamics GP Partner

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