Five ways to use supply chain optimisation for business growth
The supply chain market was valued at $32 billion in 2019 and is expected to double by 2030. The vigorous growth of the supply chain market has underscored the urgency of an effective supply chain optimisation for long-term business success. Supply chain optimisation enables you to refine your business processes to operate efficiently and perform optimally to stay competitive in this ever-evolving market.
We have listed some of the ways in which the best supply chain and operations management drives business growth, increases the overall efficiency business, and reduces costs.
1. Leverage technology for your business process
Technology in business can simplify the complex supply chains by automating the task to streamline the process. Creating an automated process provides you with data-driven insights and enables you to find ways to increase efficiency and reduce risk. As per a survey, by 2024, 50% of supply chain companies will invest in AI-based technologies and advanced analytics capabilities for improving business processes.
2. Outsource your business activities
Outsourcing business processes have benefitted 88% of the companies in achieving their cost reduction goals. You can streamline your business by outsourcing some of your processes and focusing on vital processes. Organisations that keep all the processes in-house end up exhausted with unmet deadlines and confusing procedures that result in poor management. Outsourcing processes such as logistics, procurement, and customer services can benefit your company and place you in a good business position.
3. Build effective communication between supplier and retailer
Communication is an intricate part of any business and is one of the most critical aspects of supply chain optimisation. Large establishments have even more responsibility in maintaining a uniform understanding of the supply chain process within the establishment. Transparent communication between suppliers, manufacturers, and retailers ensures demand fulfilment and eliminates confusion.
4. Centralised management system
While optimising your supply chain, you have to ensure that every aspect of your business functions cohesively. Supply chain management software integrates different departments onto one platform to visualise daily business activities.
5. Analytical tools
Understanding your customer demands gives you a competitive edge in business. It helps deliver better customer service and lets you identify future trends to keep your stock at appropriate levels. Analytical tools help you analyse the sales data to predict future demands and communicate them to the supplier. The data extracted from the analytical tools provides crucial business decisions.
How can supply chain optimisation help your business?
Optimising your supply chain improves delivery times, builds strong customer service, rationalises inventory management, provides boost to sales, and brings agility into the business. Additionally, supply chain optimisation offers the following benefits:
- Effective collaboration:
- Improved quality control:
- Shipping optimisation;
- Reduce overhead costs;
Integrating supply chain management with business processes removes bottlenecks and enables seamless flow of information.
Management systems in the supply chain improve quality control to protect the employees from the risks of exposure to toxic materials or accidents by preventing discrepancies within the system and maintaining information at the right nodes.
Supply chain management identifies the behaviour of bulk orders and small parcels, helping the company develop a solid plan to get orders to the customers quicker while minimising the cost.
Optimising your supply chain can reduce the overhead costs associated with a slow-moving inventory. Automating certain facets of the process can improve productivity and promote a better inventory management system.
For organisations on the digital transformation journey, agility is key in responding to a rapidly changing technology and business landscape. Now more than ever, it is crucial to deliver and exceed organisational expectations with a robust digital mindset backed by innovation. Enabling businesses to sense, learn, respond, and evolve like a living organism, will be imperative for business excellence going forward. A comprehensive yet modular suite of services is doing exactly that. Equipping organisations with intuitive decision-making automatically at scale, actionable insights based on real-time solutions, anytime/anywhere experience, and in-depth data visibility across functions leading to hyper-productivity, Live Enterprise is building connected organisations that are innovating collaboratively for the future.
How can Infosys BPM help?
High-performing supply chain management and operations accomplish several business goals by increasing efficiency and responsiveness in the supply chain process. At Infosys BPM, we offer automated end-to-end solutions in the supply chain by providing consulting, technology intervention, and managed services to run Supply Chain Planning as a Service so that you can easily meet customer demands and improve business agility.
Learn more about our supply chain optimization services and solutions to build a futuristic supply chain.