Is Your Supply Chain Losing Money Needlessly?

Your supply chain could be losing money from a number of different less-than-optimal situations, from carriers who do not meet delivery expectations to suppliers who aren’t held accountable for fulfilling orders late. In today’s business environment, no supply chain can afford to throw away money.

Thankfully, technology can help identify and correct any behaviors that are hurting efficiency, whether they are external or internal. Here is a look at three ways you can make your supply chain as cost-effective as possible.

Be Careful with Expedited Freight Shipments

While everyone is in a rush to match Amazon’s super-fast shipments, the truth is that not every delivery needs to arrive quite so quickly. When freight is expedited unnecessarily, it is often the case that no one is held accountable for doing so. Technological solutions that set acceptable thresholds when it comes to expedite fees, alert superiors when they are exceeded and prompt them to accept or deny it can bring about a noticeable drop in unnecessary expedite fees.

Find Out What Happened When Things Go Wrong

Key performance indicators like total transportation costs and on-time delivery can be quite useful, but a deeper analysis of the available data can help identify where things went wrong when orders don’t arrive on time, for example. This kind of approach can also help you to predict future patterns and move you away from short-term fixes to proactive changes across the board that boost efficiency.

Carry Internal Processes Over to External Partners

As the supply chain becomes more and more interconnected, companies are under pressure to optimize their own processes while ensuring their suppliers are also acting correctly. By setting up suppliers in a cloud portal, for example, buyers and providers can collaborate and gain visibility regarding orders and possible delays. That way, when suppliers do not keep up their end of the bargain, they can be held accountable.

When supply chain information is centralized and made more visible, businesses can solve problems and bring costs down.

This blog post was based off of an article from Logistics Viewpoints. View the original here.

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