Several companies’ need to modernize and digitize their supply chain network has become very essential today that competition and expansion issues of businesses are essential. Having a strategic supply chain solutions has been proven to be cost effective, can minimize waste, and very favourable for faster delivery for customers—no matter where they are located.
The website descartes.com through the article 4 Benefits of Investing in Supply Chain Management Solutions to Automate Logistics Processes shared how reduced shipment costs and improved customer services are just some of the major benefits of supply chain management solutions, “Reduce Shipment Costs. Utilizing a logistics technology solution can reduce shipment costs by offering increased visibility into multimodal shipment options available. Without adequate visibility into logistics operations, many businesses may not realize that shipping by sea may be a much more cost-effective option for a particular shipment than shipping by air. Using technology to evaluate modal options can greatly reduce a company's overall shipping costs. Improve Customer Service. Logistics technology allows the tracking of shipments, materials and products both on the supply side and the delivery side of a business’ operations. Streamlining operations using an order management system puts products into the hands of customers quickly and reliably. Real-time visibility into the diagnosis of a possible problem enables a business to quickly diagnose the issue and provide a quick solution to help maintain customer satisfaction.”
Mark, who has a digital and offset printing company, shared how he benefits from outsourcing through a fulfillment centre since he learned some document storage solutions tips through his newfound knowledge on supply chain management, “My company has been around for 10 years now, and naturally, I have a lot of customers already. When we went online, there was a wider reach of customers that sometimes, the orders need to be stored for quite a while before they get shipped to a faraway locations. Since I learned about supply chain management, I was able to make it easier for everyone in the company to handle these orders no matter where the clients are from. I didn’t have my own warehouse nor was I knowledgeable in distributions overseas so my partnership with a fulfilment centre was really a blessing. And because of this, yearly revenue exponentially increased too.”
True enough, improved product and material inflow is one of the many benefits of supply chain management, “Time-to-consumer is a crucial indicator of product flow efficiency. The less time it takes for goods to reach the end customer, the more efficient the product flow. However, there are many other factors to consider such as the quality of the materials or goods that reach customers, the supply and demand balance, shipment options and costs, and inventories.
Effective supply chain management enables companies to improve product flow through accurate demand and sales forecasting and also improve inventory management to arrest the bullwhip effect and avoid underproduction. SCM also minimizes delays and allows full traceability and visibility into the movements of goods from the supplier to the customer. SCM enables working strategies that can accelerate time-to-market and optimize business speed, while ensuring high level of product quality,” as the article titled The Benefits of Supply Chain Management for liaison.com explained.
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