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April 1, 2023

Six Things You Should Avoid for Better Supply Chain Management

Six Things You Should Avoid for Better Supply Chain Management

by Tom K / Friday, 17 November 2017 / Published in Blog

If you want to achieve better supply chain management in Toronto or Vancouver, there are some best practices that you should be doing right now. There is pressure to contain costs and produce results despite challenging circumstances, so you must be able to transform and adopt certain methods and processes that can make your organization better than your competition. These methods may vary from company to company, but there are some general practices that leading companies have implemented that you can learn from. Here are six things that you should avoid so that you can provide better supply chain services.

Outdated Technology

Today’s consumers are more knowledgeable and tech-savvy, and with that awareness come greater demands. Customers expect to browse, purchase, collect, and return items as they please. As a retailer, you must ensure that your supply chain offers the latest in terms of technology. The average shopper may use multiple devices, from smartphones and wearables to desktops and laptops. They use these tools to shop, so when a business does not have an integrated approach to their supply chain, customer satisfaction suffers. You need to make sure that your technology is up to speed so that you can track real-time inventory, provide shorter shipping times, and improve your customer satisfaction.

Poor Quality Control

To achieve quality control for your products, it is important to have transparency in all areas of the supply chain, from manufacturing to warehousing to distribution. When working with your suppliers, you need to introduce service-level agreements so that they adhere to them. It may take time and effort to align performance with your expectations, but having a good relationship with your supplier will go a long way to making sure that you are providing quality products and service to your customers.

Supplier Confusion

One of the biggest areas of concern when working with a third-party logistics (3PL) provider is not knowing who they are. You may have a relationship with the top-level member of your supply chain, but do you know the employees working at the ground level? There may be hundreds of contractors helping to develop your products before they are ready for distribution, so it can be a challenge to keep track of who is a part of your supply chain. This is why you should work with a 3PL provider that is transparent about who its employees are and how its services work. These companies increase visibility and allow you to better judge the level of risk present in your chain, and prevent confusion.

Not Giving Customers What They Really Want

Knowing what your customers’ requirements are should be the focus as you shape your supply chain strategy and structure. You need to provide what they need and avoid adding extra costs for things they see no value in. This may sound simple, but there are many areas that you need to pay attention to. For example, if you are providing next-day delivery to all of your customers, you may be wasting money as not every customer needs it.

Here’s another example: a company may try to satisfy customers calling in with complaints by giving them free delivery. Unfortunately, the distributor will experience a tremendous loss of revenue. Both the distributor and the customers would have been better off if the distributor had simply eliminated the complaints by making sure that the problems did not occur again. Instead of dealing with the problem and finding an effective solution to offer better customer service in the future, the company took a shortcut that ended up costing it thousands of dollars. In summary, you should make sure your organization understands that when customers see value in a level of service, they will expect to pay for it. Knowing this will help you align your customer service with customer requirements while also achieving more sales, profits, and customer loyalty.

Afraid to Take Risks

Sometimes you will have to make decisions that may be risky, but you should not let this fear stop you from experimenting. Even if your decision is risky, it could prove to be profitable for the company. If it does not work out, you will have learned from it and have another plan. To ensure that everything runs smoothly, you can also rely on your risk management skills—just make sure that your calculations are secure and that you communicate with your team.

Refusing Mentorship Opportunity

Even experienced companies have room to grow, so having a know-it-all attitude will definitely be a hindrance. Mentors can help you get the right perspective and provide you with insight and advice. They are also a great networking source and can help you make the right moves for career advancement. You may think that you know how to manage your supply chain on your own, but experts who have been focused on the industry for decades will have a lot of good advice to give you.

Get Help from Lean Supply Solutions

If you are looking for contract logistics services or third-party logistics in Toronto, give Lean Supply Solutions a call. We are in tune with the rising trends in supply chain management and always strive to stay up to date. We commit to being aware of our clients’ operational 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. Lean Supply Solutions is able to offer consistent, accurate, and quality results by striving to ensure that the right products are provided to the right customers at the right time, while saving you money. To learn more about outsourcing to our 3PL distribution team, or to ask any questions, contact us at 905-482-2590.

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