Wednesday, August 17, 2016

Businesses Supply Chain Management

Sustainable supply chain management,                                                                 as it originally meant, is getting complete visibility of a supply and capture information that can be translated into useful data that can help a business prepare for possible disruptions besides higher customer experience. It meant taking faster decisions, smarter logistics and better performance. Over the time, the term sustainability became more inclusive. It also meant environment friendly initiatives on part of businesses.
Visibility is vital for successful supplychains globally as that is the best way to prevent disruptive events from ruining the efficacy of their transportation and logistics, which the supply chain heavily depends on. Let us elaborate a bit on this. An efficient supply chain empowers a manufacturer to effectively track every activity, parts or products, whether they are at rest or in transit, as well as inventory. The data helps in making suitable changes in a supply chain to make it flexible and responsive to the dynamic needs of customers while also adapting with the organisation's strategy and its constraints. The result is a higher reliability for the brand through enhanced customer satisfaction. Data availability also helps exploit all the options making the whole chain cost effective.

The three major issues a supply chain needs to be aware of is to be able to tackle are:
Visibility: Many companies struggle to create an end-to-end visibility of the supply chain. And this visibility is not possible without sufficient data.
Costs: Excess or expired inventory are the main causes of cost escalation. The financial risk can be managed smartly with real time business intelligence.
Customer Service: Customers have very little patience. They hop from one brand to another easily if they don't find the precise inventory or experience they are looking for. An organised supply chain makes for a faster and reliable delivery.
Environmental Sustainability:
The rapidly changing environmental conditions during the past couple of decades added to this a new perspective, which is - creating products and practices which are socially responsible. Which means an effective sustainable supply chain management must now also give a thought to environmental good besides just inventory, delivery and cost-effectiveness.
For instance, organisations are now taking up projects that involve green technologies, and reduce energy consumption by optimising waste in all forms within their logistics networks. For this, they are researching newer ways to restructure their delivery systems and methods by collaborating with supply partners. The best thing about the modified idea of sustainability is that it strengthens reliability and profitability for an organisation.


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