The supply chain is becoming an ever more important area in which businesses can save time, cut costs and increase revenue, but not every organization knows how to achieve supply chain optimization. Industry professional Bob Patton wrote on Forbes that if done correctly, optimization can have both a lasting and immediate impact on the growth and profitability of an organization.
"If you approach its implementation properly, an optimized supply chain can help define, recommend and set flexible supply chain strategies that focus on your company's unique operational needs and resources," he said. "It's a big task, but savvy CFOs know that minding their company's supply chain is imperative."
CFOs, he said, will recognize that supply chain optimization and the use of automated data collection will bring about improved customer service, more profits and success in launching new sectors and geographies. How each business achieves this will depend on how the individual marketing, distribution, purchasing and other responsibilities work. If a company understands how much optimization can help, they will have a much better chance of succeeding in their goal no matter what the circumstances.
Enabling technology and innovative software should help enterprise CFOs better understand metrics and performance that could drive the supply chain to be even more effective.
KPMG said organizations looking to coalesce legacy systems with new supply chain tools will need to place emphasis on this area to make sure it goes well, as these tools together can help enable cost reduction and efficiency. Focusing on good communication, service level agreements and key performance indicators to ensure the most is being derived from a new move should all push a company in the correct direction. After this, it will take testing to be sure the business is heading the right way and can make any necessary changes.