Supply Chain Management

How to develop a system that works for you

Creating your supply chain is an ongoing process because it changes and grows alongside the business. However, most business owners work a supply chain plan into their business startup, in order to avoid unnecessary delays or shortages in the first weeks of operation.

An Important Business Resource

A supply chain system is an important business resource because it can help save money while increasing operating efficiency. Without a supply chain plan, a business owner can find him or herself stuck without enough product or supplies - or worse, covering the costs of having too much product and supplies.

Organization is vital in the development of a supply chain system. Your supply chain has to respond to the needs of your organization, and react quickly and efficiently to changes. For example, if you work with perishable goods, your supply chain needs to be set up so that you receive the goods with plenty of opportunity to resell them - and for the consumer to use them - before they go bad.

Timing is Everything

Your entire supply chain is based on timing. If you don’t have the room to store your product or supplies, your supply chain must be able to react on a need-to-ship basis. At the same time, if budgeted for storage and maintenance, you may be able to take advantage of savings based on bulk purchases. You will have worked your inventory management and supply processes into your business plan, so you need to use these processes to figure out your supply chain needs.

Get an Outside Opinion

You may decide that your supply chain needs are best evaluated by an expert. You can consult a specialized firm who will come in and review your process. A supply chain assessment is helpful to new business owners because they can take advantage of someone else’s experience. Or, try consulting other people you know in your industry, and get the tips and tricks that will help you find the best process for your needs. There’s no point in reinventing the wheel if someone has already determined a set of best practices!