Optimizing your supply chain design starts with understanding your current supply chain. Where is it working well? Where is it causing you problems?
Each part of the supply chain is connected, meaning a problem in one area can compromise the entire global network.
If possible, use real-time data and big data insights to delve deep into each area of your supply chain. This will provide maximum analysis and understanding of your current setup and support sales and operations planning.
Highlighting areas for improvement allows you to fix them. For example, having more accurate demand forecasting, warehouse automation, diversifying your supplier network or bringing new technologies on board to give you real-time data.
Four components of supply chain planning:
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Integration and departmental communication
A single view of accurate and reliable information across your business is critical for coordination, measurement, and control. It ensures everyone in the company is looking at the same information and understands the supply situation. A fully integrated system that tracks real-time information means you can plan for and mitigate supply disruptions.
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Day-to-day operations management
Once again, you need real-time, good data to control supply. Understanding demand and having plans to respond to demand fluctuations allows you to streamline your processes. Efficient operational processes can reduce costs and facilitate smoother fulfillment. Keeping inventory levels lean with buffer or safety stock minimizes the impact of supply chain disruption.
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Purchasing
Accurate demand forecasting is vital to ensure replenishment meets demand and you avoid over or understocking. Demand forecasting software provides more reliable information than spreadsheets to ensure you have the right product, in the right quantity, at the right time. The software can automate your reordering, monitor supplier costs and lead times and alert you to any changes that affect your operating costs.
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