Sewa Gudang, Jasa Logistics, Logistics Indonesia

How Supply Chain Affect to Business

IMS Logistics

The success of your business linked to the performance of your supply chain. So, if you want to be success in your business you need to your supply chain success too. One of the most important things of supply chain is the sustainability. With the manufacturing and distribution industry, the sustainability is one of the parts who takes a lot of time and complicated.

According to survey from Deloitte, 79% of companies with high-performing supply chain achieve revenue greater than the average within their industry. So, the poor supply chain performance commonly contributes to corporate business failure.

So here are the supply chain points to make your business success:

  1. Strategy

If your company didn’t pay attention for supply chain strategy, now it’s the time. A well-designed supply chain strategy will help a company to achieve commercial goals and consequently corporate success. What you have to do now is make sure your supply chain strategy designed to support the overall strategy of your business. The poorly designed supply chain strategy is the one factor of your business failure.

  1. Network design

We all know that network evolves through a series of discrete changes and developments, each addressing needs as they arise and few considered in terms of creating a strategically integrated supply chain. Along with the design of supply chain strategy, especially the part which deals with outbound distribution from plants or warehouses, is important in the success and failure of a business.

  1. Service Performance

The customer should be a primary focus when considering supply chain strategy, that’s because customer satisfaction is highly dependent on the supply chain service. If you can make your customer happy with your supply chain you can grow the revenue and it’s a sign of successful business.

The performance of your supply chain will impact customer perception of your business and the service they receive from it.  Also, recognize every problem within your company’s supply chain. Identify the root causes and begin to address them. In turn, operational performance and business will help you to be success.

  1. Cost

Identify the costs of serving customers is one way to understand the way supply chain costs after affect business success. You need to know the use of a methodology known as “cost to serve analysis” sometimes reveals shocking realities about supply chain costs. You can’t focus only on cost reduction, but also your emphasis should be on trimming away processes and activities which add no value. A great deal of cost can save more by improving, streamlining, and optimizing the supply chain.

  1. Supplier performance

Sometimes the supplier holds your business success. That’s why you need to work in collaboration, at least with primary suppliers to try and minimize supply chain uncertainty. Collaboration between you and suppliers is the only way to guard against supply bottleneck and inventory shortages, both of which can otherwise get in the way of business success. At the same time, there is also need to manage supplier contracts and agreement effectively.

  1. Inventory management

If you count all your assets, you always show a profit. That makes inventory management important in business. It has significant impact on working capital and on cash flow too. Take some time to investigate inventory management, and find about forecast accuracy, and the way to reduce inventory holding cost, even how to speed up customer delivery lead times. If you already find the answer and improve your working capital situation, you’ll find that improvements will support increased levels of customer service and make your business successful.

  1. Corporate responsibility

The number of commercial brands affects the reputation. Corporate responsibility issues can impact any business. Any performance management program that you implement should focus on the integrity and ethical responsibilities of your supplier’s sources as well as on service performance and collaborative initiative.

Developing supply chain it’s not easy and takes a lot of time. But, if you can improve your supply chain, you can improve your business service and get more profit.

Read more: How to Send Parcel in Cheapest Way?


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