A business that dies because of a supply chain problem is not something to be taken lightly. It takes expertise, planning, and execution that can’t always be seen from one side or seen by just one person to ensure everything runs smoothly.
The success of a product is very dependent on many factors behind the scenes. What are these products made of, how are they made, what connects them, and much, much more. This also applies to e-commerce which is developing their consumer base by conducting marketing campaigns without sacrificing efficiency.
You can only manage what you understand. This time we will discuss the basics of supply chain planning. Starting from strategic goals to key performance indicators (KPI). Here will cover everything needed to implement optimal processes in the company.
What is strategy and planning in a supply chain?
Strategy and planning in the supply chain is a practice that seeks to optimize demand projections while ensuring that opportunities are positively utilized.
The aim of this plan is to find a balance between supply and demand so that no threat or opportunity is overlooked. All of these things are how to optimize logistics with efficient use in various industries such as manufacturing and so on. And also the ability to carry out plans every day by fulfilling existing orders.
The use of software for planning and management has been done before. Many businesses use a program to reduce their time managing inventory, so that they become more flexible in making decisions about products or the number of employees needed so that everything runs smoothly without problems.
Seven ways to create strategy and planning in the supply chain
Demand management and planning
The first is demand management and planning which can predict future product demand. This allows inventory to meet existing demand. Supply chain managers forecast demand by looking at consumer habits, market conditions, demand conditions, past sales data, and many other factors.
Correct analysis can optimize the supply chain , reduce costs, and can also reduce waste.
Supply management
Supply management is closely related to the efficiency of implementation of the sourcing and procurement processes. You must have a trusted supplier to be able to get supplies of raw materials, components, software and other things related to product manufacturing.
production management
This method determines how much raw material, machinery, and labor are needed to produce an item. Producing goods in accordance with existing demand is very important to prevent the accumulation of goods. By leveraging existing data from the market, supply chain managers are able to identify how much product to produce and store in warehouses for emergencies. The supply chain manager also ensures that product quality must not be below the applicable standards.
Inventory management
Everything related to product handling, warehousing and order fulfillment is part of inventory management. Inventory management is important because it is the bridge between product manufacture and delivery to consumers in the supply chain. The company has a goal to keep inventory optimal
There are many aggregator services such as NimbusPost that can assist with technology-assisted inventory management and order fulfillment.
Pricing strategy
Pricing strategy cannot be done by just anyone. Existing prices are very influential on product sales. An example is that there will be a lot of purchases when you lower the price. Price also affects the existing supply chain, therefore the pricing of a product is usually done after excluding supply chain costs and consumer purchasing power.
process management
In simple terms, process management means placing a series of processes such as sourcing, procurement, production, warehousing and shipping in one thread. In fact, supply chain is a process that requires careful thought and planning to simplify existing processes. If there is one small mistake, then the supply chain process can be hampered and reduce customer satisfaction.
Business planning integration
Apart from supply chain management, a business has to deal with many other aspects such as finance, marketing and others. Business planning that is integrated with the supply chain to achieve existing business goals.
Conclusion
It takes planning and strategy in order to excel in business. This also applies to building a supply chain for an e-commerce business. Matters such as demographics, industry trends, consumer response, resource availability, and so on must be properly considered in order to make the supply chain more optimal.
Companies have a wide selection of software and service providers that can help optimize their supply chain. This cannot be done without the help of technology, so it is very wise to use technology as a tool.
FAQs
How can I improve my existing warehouse management system?
The warehouse management system simplifies existing warehousing and inventory processes and optimizes the supply chain. You can use modern technology such as robots, drones, and so on.
How to run a warehouse efficiently
To be able to run a warehouse efficiently, you must focus on optimizing existing internal operations, improving operations by using more modern systems using technology, and educating workers with new changes. You can also use existing space more effectively, so you don’t have to add a warehouse.
What are the KPIs for a warehouse management system?
- Pick-up accuracy
- rate of return
- Inventory replacement
- Reorder level
- Order waiting time
