Tag: supply chain strategy

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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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E Procurement Solutions: Reducing Costs for Companies by Revamping Businesses Processes through Digital Procurement

With the emergence of new collaborative business practices, companies have started focusing on building expertise in every specific area of their processes. In such cases, productivity and agility of companies’ suppliers directly affect their business performance. Without a proper e procurement process in place, most suppliers fail to provide a standardized offer and, therefore, leave buyers with no scope for comparison. This not only decreases the visibility into day-to-day transactions but also makes it difficult for users to get the supplies that they need. Therefore, companies need to have an effective online procurement system to keep up with quality and standards both.

What is e procurement?

Electronic procurement, also known as e procurement, is the automation of procurement and supply chain processes through the internet or any other information and networking systems. An e-procurement system provides a platform for companies that support automation at a global level by automating internal business processes through electronic data interchange or enterprise resource planning. It also helps businesses to streamline their global procurement system and reduce costs by communicating vital information in an easy and effective manner.

At SpendEdge, we understand the importance of leveraging e procurement solutions for businesses. And to help organizations become market leaders, we have listed the core benefits that e procurement solutions can provide your organizations.

Importance of e procurement solutions

The lack of an effective e procurement process has always been one of the major reasons behind the inefficiency of procurement operations. This not only results in unwarranted expenditures for companies but has also affected supply chain transparency. E procurement solutions are a great way for companies to simplify their workflows and enhance their market reach. Also, e procurement solutions allow businesses to tackle issues such as non-compliance and cartel formation. Listed below are some of the key benefits of e procurement solutions:

Benefits of e procurement solutions

Benefit #1: Reduces costs

Since the use of the internet to purchase goods and services has become quite common, e procurement solutions have reached a point where online procurement is considered to be a viable option for reducing costs.  E procurement solutions allow users buyers and suppliers to connect via digital mediums and provide them with an e procurement system. The system is effective in every stage of the buying process and empowers businesses to purchase orders from preferred suppliers, manage catalogs from multiple vendors, and contract prices in no time.

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Battling Supply Chain Risk in Five Simple Ways

Supply chain risk definition

Risk refers to the probability of any undesired event caused due to external or internal vulnerabilities which can be avoided by using preventive actions. Supply chain risk includes any type of risk that is associated with a company’s supply chain. These risks may be anything ranging from natural calamity in a region that the organization procures raw material for production activities to transportation strike due to which finished goods cannot be supplied to the market. Supply chain risk is the deviation from the expected or standard performance of these functions. Including demand planning, sourcing, production, supply planning, transportation, and reverse logistics.

What is supply chain risk management?

Supply chain risk management refers to an organization’s coordinated efforts to identify, monitor, detect, and mitigate any threats to supply chain that can consequently affect the company’s continuity and profitability. Cost volatility, supplier financial issues and failures, material shortages, and natural and manmade disasters are some of the primary examples of supply chain risk. Global supply chain leaders use supply chain risk mitigation strategies and software in order to foresee potential issues and adapt to these risks and unforeseeable supply chain risk as quickly and efficiently as possible.

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4 Simple Ways to Master Supply Chain Planning

The economic volatility that occurred a decade back resulted not only in the global economic recession but also in the instability of consumer demand and rapid changes in raw material, fuel, and commodity prices. Due to this, supply chain executives were under constant pressure to formulate more customer-centric and efficient supply chains while identifying innovative ways to reduce costs and promote growth. Supply chain planning is integral to the success of any business. For companies, ensuring that supply and demand planning is on track is vital. Making constant improvements in supply chain techniques and processes are vital to achieving this. There are numerous ways for businesses to do this. And if followed correctly, it might surprise you that supply chaiRequest Demo_SEn planning is much simpler than you think. Keep a track of these four aspects to step up your supply chain planning process:

Focus on customer needs 

Having a clear-cut demand planning strategy is essential for companies to ensure that they are there are no gaps in meeting the customers’ demand. A common mistake made by manufacturers is believing that the only thing they need to be concerned with is getting their products to the retailers. Ideally, manufacturers must pay more heed to improve the quality of the product, taking into consideration the end consumers. A proper demand planning strategy ultimately results in a good supply chain planning process. This is because it helps manufacturers understand what customers want and how much inventory of one product is needed over another.

Data accuracy 

Most of the supply chain planning process relies heavily on the historical data that has been collected during a particular period. If companies aren’t focused on right data, they would have a hard time trying to make improvements, especially in activities like demand planning. Also, the data collected must be easy to understand and use. This would help in a quicker- decision making and implementation process.

For a visual explanation of supply chain planning and optimization, check out this video on YouTube: 

Clear communication 

Good communication skills are crucial for the smooth flow of operations, avoiding delays, and eliminating mistakes. This also holds true for an efficient supply chain planning.  Communication among all parts of the company in question is vital to the overall success of the supply chain. Businesses must make use of computer software and equipment that can communicate with different portions of the business. This will allow for communication that is fast and efficient, which cuts down on lag time between when one department finishes a portion of the chain and another begins one. It also helps the top management to quickly find and eliminate issues that may slow down the progress a product makes through the chain.

Track results 

Several tools and technologies are available today that helps companies in demand planning and also track their supply chain planning process. It is always better for companies to opt for a mix of both mobile and traditional technologies. Mobile technologies help executives with their supply chain planning attempts on the go. This will help minimize errors and issues are addressed in a timely manner. Employees should be able to tack their efforts to identify gaps in a timely fashion and rectify it before it gets too late.


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5 Critical Steps for Establishing Ethical and Sustainable Supply Chain

The pressure is on: ethical and sustainable supply chain has become critical to business success, and more and more businesses are scrambling to make sure their supply chains meet these new standards. Consumers are overwhelmingly beginning to favor businesses that are committed to environmental-friendliness, offer fair wages and labor, and who have demonstrated social responsibility. However, establishing an ethical, sustainable supply chain should be done in a careful series of steps, and involves research, communication, and commitment. Here are five of the most critical steps for establishing a sustainable supply chain:

Key Steps to Establish Sustainable Supply ChainContact US

Step 1: Identify your challenges

Start by laying out the supply chain and procurement challenges that your industry, your suppliers, and your business itself typically face. How have you overcome them in the past? What is the typical root cause of these issues? Once you’ve asked yourself these questions, you can identify areas of your supply chain that require improvement and special attention when working towards overall sustainability. This important step will also help you to evaluate the overall productivity and effectiveness of your current supply-chain setup and your supply chain management that will ultimately build up a sustainable supply chain.

Step2: Outline your supply chain

Trace the flow of your entire supply chain. You should also identify how information moves through your supply chain, and where your supplies and services are coming from. Take a look at the geographic locations of your suppliers and seek to understand major issues—political, humanitarian, environmental, etc.—in those regions. Evaluate your suppliers in terms of risk and location, and address any issues accordingly. For example, a supplier that exploits underpaid migrant workers is, clearly, not a good fit for a sustainable supply chain.


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Step 3: Collaborate

Engaging in supply chain collaboration with like-minded businesses and sustainable supply chain companies can help you to reduce waste, save money, establish ethical business practices, and decrease overall production time. It can also strengthen your reputation in your industry and increase business opportunities and profits.

Step 4: Ensure visibility

You should have the full picture of how your suppliers operate, who they hire, what their impact on the environment is, etc.—and your suppliers should be aware of your business practices as well. Communicate effectively, share an accurate image of your supply chain and processes, and make sure you all share the same vision and are committed to ethical and environmentally-friendly business operations. You should also make sure that your suppliers and partners reflect positively on your business and don’t contradict your business’s values and efforts. All individual employees, too, should be fully in the know about your business’s practices and your overall vision and goals. This will effectively help you have a sustainable supply chain.

Step 5: Demonstrate your commitment to your goals

It’s not enough to simply have a mission statement about how your business seeks to be ethical and sustainable—you have to practice what you preach. You can demonstrate your commitment to your stated goals by becoming involved with communities and charities that match your vision and being transparent with your customers about how your business operates and what your goals are. This will also result in increased customer loyalty, a better brand reputation and will help you build a sustainable supply chain.


To know how SpendEdge’s procurement intelligence solutions can help you establish a sustainable supply chain

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