As more businesses grow concerned over meeting the expectations of investors and regulations of the shipping and production industry as it pertains to supply chain processes, business owners need to know how to ensure optimum functionality of the supply chain. More businesses have taken advantage of emerging market production and capabilities to reduce costs. Additionally, the existing market is expected to double to more than 4 billion consumers by 2025. Unfortunately, this leads to the inherent problem of more opportunities for problems to arise. As a result, obtaining Global Supply Chain Excellence status remains a daunting and near-impossible task for many businesses. Your business can work towards achieving this goal by following these ten unique keys to Global Supply Chain Excellence.
Improve Supply Chain Visibility
Public perception of a company has the potential to impact a company in a positive or negative way. Unfortunately, past business failures and bank bail-outs have left a distrust of companies with the public. As such, businesses that do not reveal aspects of their operational procedures to the public will face intense scrutiny and public criticism. To improve supply chain processes and reach the point of Global Supply Chain Excellence, companies must ensure their business processes are easily visible to the public, especially processes which could have dramatic impacts on local workforces and markets.
Protect Gross Margins
Businesses rely on an intricate web of expenses and income. However, business expenses must not exceed a comfortable margin of error. Otherwise, the net income of the business could falter. Businesses need to be more conscious of how the expense-income equation functions and ensure that the net result does not fall outside of the comfortable zone for expenses if a 3PL is used in the course of supply chain management.
Increase Logistics Agility
When a business uses a 3PL provider for supply chain processes, the business has a greater degree of flexibility to ensure parts reach the end customer in a timely, cost-effective manner. Many businesses continue to utilize in-house supply chain processes, which result in rigidity for the business. As a result, the business could lose a significant amount of capital if in-house processes experience technical or man-made problems, such as data entry error or incorrect order fulfillment selection.
Improve Compliance With US Customs and Border Protection Regulations
Since 1993, US Customs and Border Protection (CBP) officials have carefully watched businesses to ensure adherence to recordkeeping and shipping requirements as outlined within the Modernization Act. However, many business owners may fail to realize that a simple transition to digital supply chain processes lies within the oversight regulation of the Mod Act. Therefore, business owners must ensure supply chain processes meet all of the CBP requirements before, during, and after all processes are completed.
Adopt Supply Chain Finance Options
Business credibility exists as companies work with other companies to ensure payment of goods and services rendered. However, some companies may not have the available capital to pay for services in advance, and supply chain finance options can help companies build their creditworthiness. This shows other companies and consumers that a business has an obligation and duty to ensure their business meets customer and industry standards for supply chain processes.
Improve Management Processes
Management encompasses all aspects of a business, which includes supply chain activities. However, managers may be working with outdated information and not know where processes could be improved upon. By updating management processes to modern demands, a business can show alignment with industry specifications and have a positive return on investment for outsourced supply chain processes.
Deploy Commercial Global Supply Chain Technology
The Internet of Things (IoT) and increases in technological-applications in supply chain processes demands that any new business must use technology throughout the supply chain in order to be effective. When a business does not use technology in the course of supply chain processes, inefficiencies will exist and order fulfillment processes will become disrupted.
Differentiate Supply Chain and Corporate Strategies
Businesses must create two different categories of strategies for the successful implementation and management of supply chain processes: supply chain and corporate strategies. Supply chain strategies include strategies used to selecting a site manufacturer, storage of merchandise, and shipping of such merchandise. Additionally, corporate strategies should involve methods of attracting new customers, research and development of additional products, and customer service. However, these differing strategies may overlap in some cases, and businesses must understand that collaboration between the corporate and supply chain sides is necessary for optimum functionality.
Take Advantage of Big Data
Modern society has become a compendium of extensive data collection and advanced marketing techniques. However, this data will go to waste if not analyzed, reviewed, and used in the development and management of supply chain practices. Business owners must create a team of data analysts and assign a single person for the oversight of this team and IT departments. When properly analyzed, big data will identify inefficiencies within supply chain processes and improve existing customer bases through transparency in analysis.
Set Performance Standards For Your Business or Organization
When supply chain processes have been outsourced, employees may feel that their positions could be at stake. However, business owners can alleviate this concern through leading by example. Supply chain processes should have a performance standard equal to that of the business, and these performance standards must exist throughout all aspects of the business. When a business owner follows these standards, subsequent employees will be more apt to embrace the use of outsourced supply chain processes, and return on investment will rise.
Few industry recognitions carry the weight and prestige of Global Supply Chain Excellence awards. To help your business reach this point of recognition, follow the above-detailed best practices. Not only will they contribute to achieving recognition, but they will also help your business grow and adapt to changes within the rapidly expanding global market.