Five Key Characteristics of Next Gen Supply Chains You Must Know
New technology and innovation has caused supply chain management in Toronto to drastically change. Long gone are the days when the supply chain was as simple as moving a product from one place to another. Today, there is a considerable amount of complex movements involved in supply chain services that need to be coordinated and tracked for efficiency. To help you get up to speed, here are five key characteristics of next generation (gen) supply chains.
1. Supply Chains Need to Be Data Driven
Data needs to be collected from as many sources as possible so companies can have the greatest supply chain visibility possible. When you have more insight into all the moving parts of your supply chain, it will have a positive impact on your company. Some of the tracking capabilities you should be equipped with are knowing where a specific product is and how fast it is moving in certain areas. Insights like these will allow you to optimize your supply chain based on analysis that is informed. Instead of relying on your gut feeling of what is quicker or more efficient, you can actually track the performance of any one aspect, to maintain or improve it.
2. Go for a Green and Sustainable Supply Chain
Supply chains that cause harm to the environment do not do well. There are many companies that have created negative press because of the way that their supply chain handles waste. Additionally, oil prices are likely to increase in the future as reserves decrease, so making sustainability in the supply chain a priority and value will go a long way. Companies who have a green supply chain have less of an impact on the environment, and use green fuels to make the supply chain more sustainable. Next gen supply chains will be those who try to make as much of their supply chain as green as possible.
3. Expand Supply Chains on a Global Scale
Thanks to the Internet and modern technology, companies can expand their supply chains on a global scale, to reach customers around the world. Global supply chains should also be optimized to react quickly at a local level. Next gen supply chains need to know how to create global sites that are effective and can supply products locally, without needing to transport them across the world. This kind of optimization saves the company a lot of money because they are able to save on transportation costs and work toward a healthier environment thanks to reduced pollution emissions.
4. Fast and Flexible
The sooner you can deliver your products to your customers, the better. But to achieve this you will need to make sure that your warehouse is stocked as soon as needed, and that your workers are able to move more products in a shorter period of time. Processing the ability to react to demand this quickly will be one of the most important factors of next gen supply chains. The growing demand of expectant customers and the rise of e-commerce means that companies need to find new ways to get products delivered in less time through inventory optimization. Additionally, your supply chain will need to be an agile operation that can adapt to changing circumstances. If you are flexible enough to handle unpredictable and devastating situations, the disruption that is caused will be minimized and you will maintain a better reputation with your customers.
5. Maintain Compliance and Visibility
One of the most significant aspects in the supply chain focuses on maintaining compliance and visibility. Compliance deals with adhering to any applicable local, state, and federal laws that apply to supply chain companies. End-to-end visibility can actually eliminate all of the potential issues but allowing everyone with access to see each step of the supply chain. This can help companies self-assess and monitor processes, which leads to a greater compliance.
Work with a Next Gen Supply Chain like LSS
Lean Supply Solutions can help you if you are looking for a third-party logistics (3PL) fulfillment services that are up to speed on the latest changes within the supply chain. We make ourselves aware of the rising trends in e-commerce and always strive to stay up to date. We commit to being aware of our clients’ operations challenges as they arise and help them get the most out of their processes. Our 3PL, packaging, and supply chain management can streamline your processes for better success. By striving to ensure that the right products are provided to the right customers at the right time, Lean Supply Solutions is able to offer consistent, accurate, and quality results. To learn more about outsourcing to our 3PL distribution team, or to ask any questions, contact us at 905-482-2590.