- WHY RFGEN?
If you feel like your supply chain is prohibiting your company from exceeding its goals, you need to evaluate both it and your supply chain management strategy. Creating a supply chain management strategy can be tricky and often complicated, but we've outlined five steps we believe all companies can take to make significant improvements in how goods flow in and out of their warehouses.
1. Understand How Your Supply Chain Strategies and Business Plans Connect
There are two components of a business plan that deal with the shipping and tracking of products from Point A to Point B and everywhere else in between. This is the supply chain and the supply chain management strategy. And, as you probably know, they differ.
Take for example Apple, maker of iPhones and iMacs, and the many suppliers within its supply chain. The parts for their iconic iPhone are created by a number of different manufacturers. For example, the LTE modem is produced by Qualcomm and the battery by Huapu (both located in China), and the display is created from Ashai in Japan. After suppliers have built these parts - and many others - and shipped them to Apple, the company builds its phones. From there, it distributes its finished product to third-party retailers to sell to consumers. Apple also sells their products directly to consumers. A supply chain and supply chain management strategy are broad concepts that involve the intricate process of managing suppliers and other factors in the supply chain, as well as the procedures to track information relating to these supply chain transactions.
While a company's supply chain strategy and supply chain management plan may be separate concepts, they are built on a single core idea: Employees manage numerous supply chains within an organization to reduce operational costs, gain a competitive advantage and deliver the best quality product and service to the customer.
An effective supply chain management strategy, then, involves using supply chain management systems to help companies overcome strategic challenges, economic pressures, government regulations and operational obstacles that might hinder their chance to efficiently move products.
Shortly, we'll dive more into what these solutions are and why your strategy should address these systems in great details.
2. Analyze your Current Supply Chain and Supply Chain Management Strategy
In order to make a change to your supply chain and management strategy, you first need to figure out what the problem (or problems) are and how to make adjustments.
Conducting this type of analysis is often very difficult to do alone because it's hard to step away from the situation and observe it from an outside perspective. This is where a third-party consulting firm can help. For those who don't want to be blindsided by a third-party search, here are a few things these professionals might do:
Prior to developing a strategy - which usually involves writing up a comprehensive report for C-suite executives - we highly recommend analyzing your supply chain and supply chain management procedures.
3. Work Closely With Your Team and Third-Party Vendors
One of the reasons supply chains falter is because there exists a disruption in the flow of communication or information exchange between strategy planners, third-party vendors and the main company.
To build a well-flushed-out supply chain management strategy, two things should happen:
Companies that succeed in accomplishing these two goals have a much greater chance of creating a supply chain strategy that supports their business objectives.
4. Choose the Right Solution
There are a number of different supply chain management solutions available. Here are some that RFgen offers:
As you can see, each system helps solve a specific problem. Once you've identified supply chain management problems, the next step is to find a software solution that can help solve them.
5. Implement the Plan
Your supply chain management strategy should include a serious discussion about how your team plans to implement the plan into the company's operations.
This process can be difficult to accomplish, especially if employees are set in their ways, but it shouldn't be cast aside.
In the third segment of this article, we noted how critical it is for companies to take seriously how team members communicate with each other and how transparent they are with third-party vendors. This practice should continue during the implementation process. Here's how communication plays a role in the implementation phase of the strategy:
Forming a strategy isn't easy - as you can see there are many comprehensive steps involved that take a lot of explaining. However, if you adhere to these policies, we're confident you can build a supply chain management strategy that works great for your company.