Facility Management in the Supply Chain
Supply chain facility management (FM) may be the most difficult aspect of your business, yet it stands as one of the most important processes. Effective supply chain FM can make the difference between significant growth or the gradual dwindling of your company.
If you’re ready to make your supply chain FM become more efficient and turn into a revenue driver, here are four best practices to implement.
Use Technology
In a technologically advanced world, a supply chain facility that still relies on manual processes won’t be able to keep up and survive. Implementing technology into supply chain facility processes is no longer a proactive requirement but a standard operation.
That said, you should choose a platform that meets your needs. In terms of supply chain FM, there are several types of software you need.
For instance, enterprise resource planning systems help simplify most processes, minimise paperwork, increase visibility, and automate specific supply chain activities. Likewise, different FM systems can help streamline your facility’s organisation and provide much-needed transparency throughout the supply chain.
Modern inventory management software can offer more visibility and provide real-time access and tracking of your supply chain. By contrast, a transportation management system is ideal for understanding how your items move, and it helps in increasing efficiency, reducing risk, and providing data-driven insights.
Regardless of what type of platform you decide to implement, using the right technology and software can help streamline supply chain FM and work in tandem with your business’s strategy.
Recruit And Train Your Workers
Emerging technology helps drive the evolution of faster supply chain processes and fulfilment. However, the skilled workers needed to run and manage the operations are in short supply. According to reports, only 38% of supply chain managers and leaders are confident in their current team’s abilities to compete in today’s industry.
Overcoming the shortage of skilled workers as well as closing the skills gap will require effective recruitment of new talent with the necessary knowledge. In this case, you can rely on staffing businesses that specialise in supply chain requirements. They can help you source talent with the necessary skills for your supply chain facility.
In addition, it’s important to provide career growth and development opportunities for your supply chain staff. Keep in mind that your supply chain facility is only as good and efficient as the people who manage it. Thus, you want to cultivate your supply chain workers, training them on standard operating procedures to bolster their current skillsets and ensure efficiency, consistency, and productivity. Moreover, consider building roadmaps for promotions and plan for retention strategies to reduce employee turnover.
Master Demand Forecasting And Inventory Management
Two of the biggest and costliest issue of supply chain facilities is having too much and not enough product in stock. The former is often caused by miscalculating demand and overbuying items or that inventory isn’t moving because sales are down. The latter means that sales are up and supply can’t support the demand, which causes companies to miss out on revenue opportunities. Both problems are consequences of erroneous demand forecasting.
Forecasting inaccuracies can significantly impact your bottom line. Thus, mastering demand forecasting is essential. This means taking into account historical sales, seasonality, promotions, and forecasts. With accurate demand forecasting, your businesses can have the right number of products to meet demand.
In addition to demand forecasting, efficient inventory management is a critical part of an efficient supply chain facility. Once your business can predict demand, managers need to master calculating the optimal inventory levels for the demand. Then, you need to develop replenishment best practices, including ad-hoc supply restocking or blanket bulk purchases.
Moreover, you need to make sure that your inventory management processes align with your supply chain objectives. This means you need to determine where to make the necessary adjustments in your operations such as lowering the total cost of ownership, shortening delivery times, or fixing inventory–demand mismatches. Fortunately, this can easily be done with a reliable software solution that provides visibility on your inventory.
Schedule Regular Reviews
It’s important to constantly evaluate and monitor your supply chain operations to maintain a high standard. Consistent data collection and regular reviews and analysis not only help finetune your supply chain FM but also provides the visibility you need to mitigate future risks.
Takeaway
Supply chain FM is no longer concerned with just moving goods from Point A to Point B. Companies today need to break down their supply chain FM, improving processes and tasks, to thrive in an ever-growing competitive market. By implementing the above tips and strategies, you can ensure a more efficient supply chain facility that can change the course of your company’s growth for the better.
Turn your supply chain facility into a force to be reckoned with!. Investing in IoSCM supply chain management courses for your team will help you drive positive growth for your business in the New Year and beyond. Call 0800 1422 522 today to find out more.