There are many steps you can take to simplify your supply chain management process, and to help it flow more smoothly. Good communication and trust can be a big deal here. It can make the difference between achieving your desired outcome in your desired timeframe, or ending up greatly disappointed, frustrated, with the constant need for re-starts. Here are some tips for managing your supply chain. You may also want to have a look at what could be considered the best SCM software.
Clear Needs and Requirements
Did we mention how key good communication is? From the very beginning, it is important that as you speak to your suppliers that you make your needs and requirements crystal clear, leaving little to no room for guesswork. You want a supplier who can consistently produce a quality product for you. You should also make sure that they have the necessary capacity and size to meet the volume needs of your company, in the necessary timeframe. It may also be very important that you work with suppliers who uphold certain standards of production and safety, necessary for your industry.
We have all heard to never put all of our eggs into one basket. Well, this wisdom applies in this case, as well. You don’t want to find yourself in a situation where you are completely reliant on one single supplier. Diversifying can be a necessary way to minimize your company’s risk, in the event of some unforeseen circumstances occurring with your initial supplier. Hope for the best, but floods could happen, fires could happen, and a number of other things could happen, which could cause downtime. What would you do if your supplier couldn’t deliver? This is where having more than one supplier for each of your products can be a company-life saver. This will allow you to minimize the effects that any worst-case scenario, on the end of your supplier, could have on your company.
No Supplier Surprises
Ideally, you do not want to spring anything onto your suppliers. No surprises. Have them in the loop of what’s coming up. Be in touch with them constantly. Have regular sit-downs with them, especially as things change and develop, to let them know your plans. Your good communication and ability to promptly keep them abreast, will develop a good trusting relationship with your supplier, where they see you as committed, and feel safe extending a certain level of loyalty and trust in your company. Your good communication in this way allows them to hash through your plans and ideas with you, in accordance to their capabilities, and it also gives them time to prepare. So, it is greatly appreciated.
You may also want to have a look at what could be considered the best SCM software.