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Supply Chain Management
Posted By:  Action Stainless IT
Wednesday, June 10, 2020

Supply chain management can be a complicated subject, and those who don’t work with it constantly often take it for granted. There are many moving pieces to ensuring a successful chain for your business that require constant attention to detail, but there are generally considered to be three levels of successful supply chain management that are crucial for businesses around the world:

Planning

The best supply chains begin with long-term decisions that are invested in from the start. Instead of running around to constantly solve new problems and issues with your supply chain, laying a solid foundation that takes potential problems into account is the best framework. Work with your team to build the chain from beginning to end.

What to consider:

  • Choose the site and purpose of your business facilities based on your needs.
  • Create a network of reliable suppliers, transporters, and logistics handlers to build strong relationships with that will prove to get better over time.
  • Build a plan for inventory and product management throughout its entire life cycle.
  • Integrate IT programs and systems to make your process more efficient and effective.
  • Plan for long-term improvements that you can implement with time to meet growing and changing client demands.

Management

Once you have established initial planning and implementation phase, it’s time to begin working on tactical management. This is where the processes become more defined in order to control costs and reduce risk by focusing on customer demands to achieve the best end value.

What to consider:

  • Establishing procurement contracts for the necessary materials and services.
  • Work out production schedules and guidelines to meet quality, quantity, and safety standards.
  • Establish your transportation and warehousing solutions - involve outsourced and third-party options if necessary.
  • Build your inventory logistics plan, which includes storage and end-product distribution.
  • Evaluate your competitors' approaches in order to adopt best practices that will work for your company.

Operations

This is the level that is the most apparent to everyone – operations involves the day-to-day processes, planning, and decision making that keeps the supply chain properly active. Because this is the most obvious level, some companies make the mistake of jumping right into this level and completely neglect the other two, which will inevitably lead to problems down the road. You will only be effective on the operational level if you have invested time in building strong strategical and tactical planning beforehand.

What to consider:

  • Anticipate and satisfy demand through daily and weekly forecasting.
  • Manage production operations includes scheduling and detailed management of goods-in-process.
  • Actively monitor your logistics activities to maintain contract and order fulfillment.
  • Navigating settling damages or losses with your suppliers, vendors, or clients.
  • Manage your incoming and outgoing materials and products, including your on-hand inventory.
If you properly invest time into all three foundational levels of supply chain management, you will set yourself up for success and much fewer headaches. Do you have questions about how Action Stainless can help you meet your supply requirements? Feel free to contact us with your questions and follow us on LinkedIn!



 
 

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    • 06/16/2020 - The Basics of Plasma Cutting
    • 06/10/2020 - Supply Chain Management
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