Principles of Supply Chain Management Best Practices
In many companies, even though the accounting and operations departments need to work together, that doesn't mean they necessarily see eye-to-eye. Conflicting deadlines can lead to disagreements. All the while, account managers may see an opportunity to play both sides off of each other to meet their clients' needs. When these kinds of conflicts occur, that makes it even more important to implement supply chain management best practices.
Supply chains are just as they sound. They are chains that have links that detail the processes needed to turn raw materials into finished goods and products, and to make sure they are delivered on time to the client. All of the components of a company, including accounting, operations, and account management, are critical to making sure the chain operates efficiently.
Following supply chain management best practices can integrate different strategies and processes so that materials flow to clients properly. A company cannot have different processes for different clients and reasonably expect to be sustainable. Sometimes the details can become more important than the big picture. It can even get to the point that vision can become completely obstructed. Incredibly, efficiency and profitability can suffer due to the myopia of certain managers.
By implementing sound, rational strategies, however, companies can ensure that it will have uniform processes throughout the enterprise. When these procedures are clearly mapped out through supply chain management best practices, analysis is simple and effective. Results are transparent throughout the executive level so that roadmaps to improvement can be quickly devised. While all processes should be uniform, there are many times where resources can be tailored to meet the different sizes of clients. The smaller the value of a client to the company, the fewer the resources that should be expended. While some may think this to be a cold way of doing business, in the long run it allows a company to realize substantial cost savings.
New sourcing opportunities can also help create global and strategic visions. Keeping a close eye on client needs can help a company find reliable sources of raw materials, more efficient and effective packaging, and improved production processes. Implementing these improved processes can help a company increase its value to its clients and be more attractive to future clients as well. Clients trust their suppliers to deliver goods and products on time. In order to be able to continue to do this, companies will sometimes need to partner with third parties to help make sure their supply chains are properly managed. This allows companies to focus on other areas of strengthening their operation and finding innovative ways to meet their customers' demands. The benefits include improved efficiency, reduction of errors, and also a reduction of costs.
supply chain: https://www.transportify.com.ph/blog/economic-growth/