Question

Discuss the possible approaches of increasing supply chain resource's efficiency.

Answer 1

1.)Partner with Your Current Suppliers

Sometimes the supply chain challenges facing a company are market wide, and developing effective solutions require the kind of scale not available to a single partner within the value chain. Situations like these present perfect opportunities to develop deeper partnerships with your suppliers to help grow each of your businesses.

Creating a mutually beneficial strategy can be tricky, but it’s doable with careful planning. When approaching this arrangement the focus should be on clearly defined, revenue sharing-based and easily trackable KPIs, and information transparency

2.)Collaborate with Internal Operations

Sometimes there isn’t a need to build a supplier coalition because the risks and supplier capital needed for success outweigh the benefits. In these instances, significant supply chain optimization may be possible through interoperation collaboration throughout the entire firm.

Similar to the previous strategy of imagining the ideal global supply chain, imagine a brand new internal supply chain. Follow the same approach to help you identify a new internal process that reduces waste and promotes efficiency. During this activity, focus on areas that have overlapping resources. By evaluating these key areas, your team can identify redundant processes that waste resources and illuminate large scale process changes that will radically improve your firm’s operations and bottom line.

3.)Drive large scale Efficiencies with Your Supplier’s Suppliers

After you’ve partnered with your suppliers to develop efficiencies, there’s a great opportunity to leverage the same partnership to drive efficiencies for their suppliers. Achieving this level of collaboration will not only give you greater insight into your supply chain, but will also grow your ability to drive large scale supply chain improvements.

4.)Increase information sharing and visibility

More transparency in logistic processes can help improve supply chain efficiency for your business that not only benefits your business but also your workforce and your clients. It is important to abolish slow, unreliable spreadsheets to provide information. Share the most up-to-date information through current technology solutions that fit well with your business and key stakeholders.