10 Efficient Ways to Optimize Your Supply Chain

In the age of the pandemic, where shortages and delays seem to rule the business world, maintaining an efficient supply chain for your company is imperative to achieving success. The big picture view of a supply chain involves getting a hold of the basic components of which your product is composed of and in turn transforming those objects into a finished, marketable product.

There are a few other details to be handled throughout this chain of events including, establishing and working with suppliers, seeking out effective shipping measures, and cost negotiation. A well-run supply chain eliminates any excessive measures or costs in order to make it profitable for the company while simultaneously providing the best possible service to the customer.

The aim of the game is efficiency. Yossi Sheffi,  an engineering professor at Massachusetts Institute of Technology discussed the power of a great supply chain, “Products can be easily copied. But a supply chain can provide a true competitive advantage.”

Creating and operating a supply chain requires constant innovation and effort. We connected with 10 different business executives to gain their insight on how to best accomplish this. 

Examine your suppliers

Danielle Calabrese is the COO of De La Calle, a company featuring a fermented Mexican probiotic beverage. She believes that every supplier is built differently and some are better suited to a company’s needs than others. 

“When choosing a supplier for your company, there are a variety of considerations to be made. Where are they located? How does their past reliability measure up to the competitors? Are they reasonable with their cost evaluations? I would even go so far as to ask how they’ve solved logistics issues in the past. Saving money with a lower quality supplier could result in additional costs or lost sales in the future so that saving upfront is irrelevant. Choose your supplier based on quality of service, not a dollar amount.”

See everything

CRAFTD is a worldwide premium jewelry brand and online retailer based out of London. Their managing director and CEO, Dan Potter, advises those in charge of a supply chain to be able to view all the information relevant to the chain itself.

“A good supply chain manager should have a profound understanding of all the numbers which comprise the chain. This means that they should know how many orders were placed with a supplier, how long it will take for those orders to be filled, the number of items packaged and shipped, and storage. This information should always be readily available and constantly referenced. Being strong in this area will help a company avoid overselling or running out of products which can directly affect the relationship with a customer.”

Assess your current strategy

Just because something is working does not mean it cannot be improved upon. If ultimate efficiency is the end goal, then being complacent counteracts that. If a company like Amazon is constantly innovating, that is reason enough to focus on supply chain effectiveness. David Wolfe, the founder, and CEO of Oliver’s Apparel, an activewear brand focused on fashion, suggested constant evaluation. 

“A great supply chain has not identically replicated a model from another company. Each company is different in need, service, and ability and their supply chain should be designed as such. No matter where you’re at as a company, perpetually asking if you can improve or if you’re using the best possible methods is key to becoming efficient. You can also look at past errors or issues in order to be better prepared for the future.”

Utilize automation

Andrea Xu is the CEO of Umamicart, a grocery delivery service specializing in Asian food. She considers automatic processes to be a wonderful way to negate errors while elevating the efficiency levels of a company’s supply chain. 

“One of the fastest ways to achieve efficiency is to reduce the amount of time necessary to complete a task. Introducing automatic systems requires some research as you have to know the finite details of the information given to a computer system. However, if a computer system can place orders or print shipping labels, a human can focus their efforts elsewhere and it’s likely that the system will be quicker. In the short term, these systems may prove expensive but time saved is money earned especially when it comes to the supply chain.”

Train your employees

Doe Lashes offers high-quality eyelash extensions with a Korean influence. Their CEO, Jason Wong, believes that training and retraining employees on matters related to supply chain operation should be a priority. 

“Creating training which informs all related employees on the variety of operation necessities related to your supply chain gives them the knowledge to be successful. Not only are they entirely informed on their specific roles and how they impact the process, they also begin to feel like part of the big picture. A positive attitude can go a long way towards productivity. Revisiting training sessions can also prove useful as new initiatives and innovations are introduced. These efforts should apply to both managers and operation employees. A well-informed team can create a well-run machine.”

Look at the history

An effective way to discover where a supply chain can be improved is to review the efficiency of it as well as the sales performance of products. Essentially, this is forward-thinking based on established information. Ryan Craver, the founder and CEO of Mallary by Matthew, a curated and sustainable clothing brand, advises this.

“Some products have more availability at specific points in the year for various reasons. Information like this can be used to a company’s advantage. At the same time, customers have seasonal demands as well and this should be planned for ahead of time. Taking the time to evaluate the history of your supply chain can quickly uncover past issues which should promote a move towards efficiency. At the end of the day, the past bears great importance on future productivity.”

Use information software

Sheila Chaiban is the CEO of One Ocean Beauty is a beauty product company giving back to the ocean. She suggests harnessing the power of supply chain software to greatly enhance the efficiency and output of a company. 

“There are numerous technology tools available which can prove beneficial to the operation of a supply chain. A high-tech world demands high-tech solutions. Warehouse-focused software can cause a drastic improvement in internal organization. Inventory tracking will allow you to see all your processes and their statuses simultaneously. Analytical software will allow you to fine-tune your supply chain. These types of resources can be costly but will pay dividends in the long run.”

Ask the experts

Genexa is a pharmaceutical company focused on products free of artificial additives. Their President, Max Spielberg, considers the opinion and guidance of supply chain experts to be a near necessity. 

“Supply chain management is no easy endeavor and there’s no shame in seeking out the opinion of someone who has achieved success in this area. While no supply chain is exactly like another, there are elements of some that are applicable. Those with experience can provide incredible insight and advice to anyone looking to get ahead. If you’re uncertain, stuck or simply seeking an edge, an expert may be able to get you there.”

Explore new technology

Computer systems, apps, and machines are constantly being pushed forward by the desire for innovation and efficiency. Taking advantage of these developments can accelerate a company’s ability to be efficient. Michael Waxman, the co-founder and CEO of Sundays for Dogs, a high-quality dog food brand, believes fresh technology is worth a look.

“Gone are the days of running a business with a clipboard and a room full of filing cabinets. Electronic technology is here to stay and is always evolving. Many companies can run their systems completely via tablet or smartphone. On the go decision-making and operation management can create a streamlined workday. Artificial intelligence, or computers that can learn, is an emerging trend as it can continue to improve processes.”

Make space for returns

Benjamin Smith is the founder of Disco, a health-focused men’s skincare brand. He advises companies to make a dedicated effort towards organizing and simplifying the products returned to their company. 

“The reality of any product service business is that some products will be returned. This can be because of damage or the customer simply wasn’t happy. It’s important to be just as efficient with products that are sent back as you are with products that go out. Keep records of where it was returned to and why as this information can aid you moving forward. Be sure to store these items properly if they’ll be restocked or sold as an open box item.”

Supply chain management when boiled down can be summed up as logistics. As evidenced above, it is a detailed and demanding process. However, when done right, it will set your company apart from the competition. Business author Tom Peters summed this up:

“Leaders win through logistics. Vision, sure. Strategy, yes. But when you go to war, you need to have both toilet paper and bullets at the right place at the right time. In other words, you must win through superior logistics.”