As the economy continues to rebound after the disastrous years following the 2008 recession, improvements in supply chain management have grown by leaps and bounds. Costs have come down as managers begin to understand the benefits of mobile data collection for their operations.
Agility At Lower Cost
Traditionally, transportation and warehouse management have been big cost drivers in terms of time expended and costs incurred. Maintaining agility while limiting cost is the goal of all supply chain managers but getting it done is a bit more complex. A Digital Supply Chain article had some tips for supply chain workers on how to streamline and safeguard the complex supply chains of today and the future.
Automated Data Collection Cuts Cost
Streamlining the supply chain through automatic data collection has been shown to speed efficiency and cut overall costs. The Digital Supply Chain story said one company was able to deploy a specific solution platform to halve its cycle of replenishment and raise its product distribution throughout the stores by 20 percent. Another company outlined their automation system for the magazine and said they were able to save $8 million in transportation freight costs during the first year alone on the way to a projected $12-14 million annual savings once the system's kinks have been ironed out.
Security Minimizes Loss, Keeps Costs Down
Along with savings incurred from automation, security is a big factor in keeping costs down along the supply chain. Good security minimizes losses and keeps scandals like the British horse meat affray from engulfing a business. A Manufacturing.net story said there are a number of ways to bolster security along the upstream part of the supply chain and back at home. Rewarding good suppliers and limiting access to the supply chain are two common-sense items that often are neglected by managers. Don't just sit at home and monitor the progress along the supply chain, advised the article. managers should be out in the field meeting their employees and suppliers. Understand the value of every employee along the supply chain. By doing so, employees will know who is in charge and who they contact in case of an emergency. Cultivating a working relationship solidifies an employees' commitment to their manager and company, which brings loyalty and productivity to the supply chain.
Training is also a huge aspect of ensuring smooth supply chain operation. Keeping workers abreast of the latest changes in software and machinery can pay big dividends in preventing down time and negative impacts to the company bottom line.