Tag: supply chain management system

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How Can Companies Achieve Competitive Supply Chain Planning?

With the rise in competition, the need to reduce costs and eliminate inventories has increased for companies. They need to link their production and procurement activities more tightly with the actual demand to sustain themselves in the market. An effective supply chain planning enables companies to keep their production and demand in sync and address customer demands.

Moreover, with collaborative planning in the supply chain, companies can consolidate sales, production, inventory and purchasing information, and become more demand-driven depending upon the real demand. Following such an approach makes companies more responsive by enabling them to perform simultaneous material and capacity planning tasks across multiple facilities and time horizons. Furthermore, it can help them to execute holistic plans, spanning from long-term aggregate planning to short-term detailed schedules.

At SpendEdge, we understand the impact that competitive supply chain planning can have on businesses. Therefore, our team of experts has highlighted a few critical steps that are needed for achieving competitive supply chain planning.

Want to know how an effective supply chain management system can increase the efficacy of your organization? Get in touch with our experts today!

How to achieve competitive supply chain planning?

#1 Move planning closer to demand

Supply chain planning allows companies to shift their planning processes closer to demand by synchronizing production and purchasing activities with the actual demand. This enables companies to increase responsiveness, address changes in the market, and transform themselves into demand-driven organizations. Also, with demand-based supply chain planning, companies can easily decrease inventory levels and improve customer service.

#2 Synchronize supply chain planning with enterprise planning

By synchronizing supply chain planning with the wider business planning process, companies can wisely optimize profitability if in case any unlikely event or situation occurs. They can even deploy sales and operations planning (S&OP) solutions to improve enterprise-wide collaboration.

Wondering how to synchronize supply chain planning activities with enterprise planning?

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#3 Improve demand visibility

Supply chain planning aggregates forecasts and sales orders created by customers and local sales offices and improves visibility into enterprise-wise demand. This allows companies and their management to analyze the kind of demand being generated in the company. This demand can further be adjusted based on the accuracy of the various demand streams.

#4 Create supply chain resilience

Supply chain planning helps companies to plan and react quickly in case of supply chain disruptions.  This increases the profitability of organizations and helps them to recover operational capabilities after the disruption has happened. Also, it helps in better product positioning and helps companies to gain substantial benefits from disruptions.

Still not sure how a potent supply chain can give better results for your organization? Request a free demo below!

 

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IR23

4 Supply Chain Planning Challenges Businesses Need to Surpass in 2019| SpendEdge

The recent paradigm shift of modern business management compels individual businesses to compete in terms of supply chains, rather than an autonomous entity. This makes it vital for businesses to integrate the company’s intricate network of business relationships and respond quickly to changing consumer demands and fluctuating market conditions.

It has considerably increased reliance on suppliers and has created the need for organizations to manage supplier relations, information, and contracts effectively. Moreover, organizations require supply chain planning systems to establish a streamlined supply chain planning process that can derive the best value from their spending. Also, a supply chain management system is important to gain 360-degree visibility into their supplier ecosystem. However, there are certain challenges companies face during supply chain planning.

At SpendEdge, we understand that an effective supply chain planning is crucial for almost all industries to run their businesses smoothly. Therefore, in this blog, we are highlighting the key supply chain planning challenges faced by companies.

Interested in running your business without interruptions? Get in touch with our experts and leverage the benefits of an effective supply chain management system for your organization.

Supply chain planning challenges faced by companies

Increasing complexity

Many times, increasing product complexities drive excess costs for companies. Not only this, the amount of stock keeping units (SKUs) increases and hits product cost targets as well. Firms involved in the omnichannel business (multiple-channel distribution) often face this challenge while supply chain planning.

Changing market dynamics

The behavior of consumers depends upon different cultural, social, personal, and psychological factors. It creates pressure on companies to reinvent their products and introduce new products at regular intervals. However, businesses need to ensure that they keep manufacturing costs low as trends don’t last long and the majority of products have short life-cycles. This is a common supply chain planning challenge that makes it imperative for businesses to build strategies that can adapt to fluctuating demands and production needs.

Rising transportation costs

As consumer demands continue to grow, enterprises are compelled to broaden their portfolio to attract the rising number of buyers. Organizations are emphasizing on fast frequent delivery through one way or the other. Companies such as Amazon have turned to the supply chain to employ new technologies. This has further increased pressure for firms to realize the advantages of value chain objectives.

Want to reduce rising transportation costs?

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Procurement

Procurement has always been considered as a medium to save the cost of goods sold but in the new age, procurement plays an integral role in business expansion. It is crucial for supply chain planning and making businesses competitive. Also, procurement experts can play a significant role in the branding of new products and market development after the cost waste and discrepancies have been sorted.

How to achieve competitive supply chain planning?

To succeed in the growing global market and achieve a competitive supply chain planning, companies need a follow these five steps:

  • Move to real-time supply chain planning
  • Integrate supply chain planning with the organization’s planning
  • Predict the demand of customers
  • Leverage real-time data across all points of the supply chain
  • Ensure flexibility to cope with disruptions

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Why Is Supply Chain Services the Need of The Hour for Modern Businesses?

Today, supply chain services have become an integral part of businesses and are vital for the success of any organization. As manufacturers nowadays need to manage multiple product lines, companies with complex supply chains require supply chain services that can simplify the daily operations. Moreover, manufacturers have to manage logistics and address demand across the globe.  With effective supply chain services, companies can integrate functions, improve financial stability and boost customer services.

At SpendEdge, we understand the impact that supply chain services can have on expenditure. That’s why our team of experts has highlighted some relevant key areas that are crucial for businesses to grow and manage financial stability.

Importance of supply chain services 

#1 Streamline flows and integrate functions 

Aligns flow 

Retailers depend on supply chain services that can deliver products to customers on time and avoid holding costly inventories in stores any longer than necessary. With supply chain optimization companies can easily design, manage, and coordinate their supply chains.

If your organization is finding it challenging to streamline functions, get in touch with our experts and know how our supply chain services can help you.

Integrates functions 

Supply chain management system bridges the gap between logistics, purchasing, and operations and ensures that companies focus on goals that can improve their overall performance. Businesses can even employ supply chain services companies for better-customized supply chain solutions.

Predicts demand 

Unlike earlier, demand planning  requires analytical skills and computer modeling. Not every company possess the efficiency to interpret the data and analyze the trends precisely. By outsourcing supply chain consulting and strategies companies can accurately predict market demand.

#2 Enhance monetary position

Improves profitability

Supply chain services help firms to reduce supply chain costs. This can lead to a dramatic increase in the profitability of companies. Also, supply chain services facilitate procurement managers to identify latent saving opportunities and offer cost-effective supply chain consulting and strategies.

Reduces fixed assets 

With proper supply chain services, firms can easily reduce the use of large fixed assets such as depositories, plants and transportation vehicles in the supply chain. They can redesign their network to serve customers in such a way that it can significantly reduce the number of warehouses.

Conducts supplier cost analysis 

Supply chain services enable firms to employ supplier cost analysis (or) price breakdown analysis technique and analyze various components. Furthermore, they aid in procuring the right products and services at the right price levels.

Want to make efficient use of each dollar that you spend?

Request a free proposal and avail the best supply chain services from our industry experts.

#3 Boost customer service

Ensures timely delivery

Customer service function is often considered to be the end function of the supply chain, but it is definitely not the end process. It works to meet the needs of the customers and ensures customers receive what they want on-time. Therefore, it becomes imperative for companies to understand customer’s needs. With supply chain services, firms can easily access the skills and knowledge required to meet customer’s needs.

Extends after sale support 

The responsibilities of companies do not just end after the delivery of products. Customers expect products to be serviced at the earliest in case of any discrepancy. This requires companies to have supply chain solutions that can keep up with such demands.

Delivers value to customers 

It is essential  for companies to determine different ways to make purchase decisions easier and deliver value to their customers. For instance, retail companies like Amazon and Walmart are giving steady competition to brick-and-mortar retailers. Therefore, businesses need the help of reliable supply chain consulting firms that can provide them with competent supply chain solutions.

Managing supply chain can become an exhausting task for companies . If you are one of them, request a free demo and let our procurement experts help you.

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Top Five Benefits of Supply Chain Planning | SpendEdge

Continuously changing market conditions and consumer demands have made it vital for businesses to evolve rapidly and be prepared for unforeseen obstacles and circumstances in their supply chains. Today, businesses are under the pressure to develop new products and keep up with the latest trends while minimizing their total manufacturing costs. Without some sort of a comprehensive plan, businesses may fail at order fulfillment, which, in turn, can result in revenue loss.

Reducing life cycle of products demands a flexible supply chain that can be employed for manufacturing other products according to future needs. This requires enterprises to anticipate the demand for upcoming products and improve supply chain performance, making it compulsory for companies to follow the best practices in supply chain planning for better supply chain management.

At SpendEdge, we understand the impact that an effective supply chain planning can have on your business. And to help companies sustain themselves in the marketplace, our team of experts has highlighted five crucial benefits that companies can leverage through supply chain planning. But before we read about the advantages of supply chain planning, let’s know more about it:

What is supply chain planning (SCP)?

Supply chain planning basically refers to the companies’ ability to make accurate forecasts pertaining to their future demands. It is a process which requires companies to balance supply and demand and manage their assets to optimize the delivery of goods and services from suppliers to customers. Supply chain planning (SCP) provides strategic and tactical planning support to help deal with supply, distribution, manufacturing, planning, production scheduling, and forecasting.

Want to develop an agile supply chain that can address the rapidly changing market demands? Get in touch with our experts and know how our supply chain planning solutions can help you.

Top five benefits of supply chain planning

Retain customers

When companies support their supply chain planning with integrated demand forecasting, they are in a position to address spikes in demand. This reduces the chances of stockouts and helps companies fulfill their customers’ demand when they need it the most.  Meeting customers’ demands helps companies to win their loyalty and ensure sustainable profits.

Stay on top of demand

By implementing effective supply chain planning strategies, businesses can forecast the demand for their products. They can accommodate shorter product life cycles, the impact of fluctuating economies and emerging markets, and enhance their supply chain planning systems while responding to changes in demands. 

Reduce overhead costs

New businesses usually lack the competency and market knowledge required to reduce the prices of their products without affecting the overall operation in a drastic manner. With effective supply chain planning, companies can reduce costs in the production process without compromising the quality and price of the final product.

Increased production costs can affect the overall costs of products drastically. Request a free a proposal and know how an effective supply chain strategy can reduce the overhead cost for your organization.

Minimize delays

Many supply chains are plagued by delays due to some or the other reason. They constantly struggle with late shipments from vendors, issues on production lines, and logistical errors that affect their supply chain management system. Effective supply chain planning help companies avoid all such issues down the line.

Optimal shipping options

As new ecommerce companies continue to flourish, buyers have plenty of options to purchase products. In such a scenario, companies need an effective shipping plan to meet the demands of the marketplace. They need to ship products in a quick and efficient manner to ensure the success of their business. With the help of an efficient supply chain, businesses can determine the best way to ship their products and reduce costs at the same time. (more…)

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