How well do you know your supply chain – are you best friends or close acquaintances? Spending quality time with your supply chain can save you money, sometimes significant amounts of money. An occasional supply chain design project can streamline operations and give executives a better understanding of the nature of logistics, Steve Banker writes in “To Understand a Supply Chain, You Need to Model It With Supply Chain Design Tools,” posted on LogisticViewPoints.com.
No doubt you already know that inventory control is one of the key elements in controlling expenses. Collect too much inventory and you waste cash that could be used in other assets or capital investments. Too little inventory and you risk incomplete orders, backorders, and losing customers. Complicating things further, you may have several, or dozens, of facilities also storing inventory and manufacturing or distributing products to customers in other regions. Connecting all the dots in your supply chain can have real impacts to your bottom line.
As Banker indicates, there are software tools that you can use to determine which supply chain operations are saving you money and what operations are more costly. Enterprise resource planning (ERP) software, such as Epicor® ERP, also has features that can provide greater insight into your supply chain, as well as control inventory with greater efficiency. There is no reason to order inventory for one location when it is overstocked in another warehouse. With Epicor ERP, you can have real-time inventory counts and you can transfer items between locations, as well as from vendors to customers directly. Banker also suggests learning regional and customer buying habits. You might discover that it is more cost-effective to reorganize where inventory stored. Storing hot products closest to the high selling regions will get your products to customers faster and with lower shipping costs, for example.
Evaluating your supply chain is something you should do regularly, more often than attending your high school reunion. Your customer’s buying habits change, top-selling products vary, and manufacturing or distribution operations also change regularly. Using your ERP software, such as Epicor ERP, will help you control many of these supply chain and inventory variables. Streamlining supply chain operations and greater inventory control can improve productivity, as well as boost profitability. Contact ComTec Solutions for more information about getting a deeper understanding of your supply chain so you can plan a long-term, successful relationship together.
By ComTec Solutions, an Epicor Authorized Partner with offices in New York and Connecticut