Everyone likes to have the ability to track their packages. This goes double for manufacturers and sellers, who not only have to keep track of the packages as they go out to the customers, but they have to keep track of the constituent parts needed for manufacturing products as well. Supply chain management importance can’t be overstated enough, especially in these uncertain times where the supply chain as a whole is interrupted by the war in Ukraine, Covid-19, and other events that make products and manufacturing components unavailable seemingly at random. But maybe you remain unconvinced. Why is it important to control the supply chain, and what can you do to maximize efficiency and minimize adverse events? Read on for our tips.
The importance of supply chain management can’t be overstated. A good handle on it can mean the difference between getting your necessary materials on time, and being left in limbo for weeks on end. But what is visibility in supply chain contexts? Strictly speaking, it refers to the ability of parts, components or products in transit to be tracked from manufacturer to final destination. End to end supply chain visibility aims to improve and strengthen the chain by providing data to all stakeholders, customer included. Once manufacturers and merchants have the data, they have the information and knowledge necessary to take needed steps to handle any hiccups before they pose a serious problem, such as improving their physical distribution.
The physical distribution definition is less complicated than you might think. Put simply, it refers to the delivery and shipment of goods from the manufacturing center, out to warehouses and distribution centers, and then eventually through delivery routes to the customer’s door. Meanwhile, supply chain management refers to the flow of goods and services, and refers to all steps in the process from the acquisition of raw materials to the final delivery. These terms are fairly similar, but do have slightly different definitions that it pays to be mindful of. Think of a square and a rectangle. Physical distribution services are a part of supply chain management distribution, but not all supply chain and distribution services are necessarily physical. Supply chain visibility benefits physical distribution by making sure merchants are able to see which geographic areas are struggling to meet order volume.
Distribution supply chain management and transportation costs don’t have to break the bank. Here are a few key tips to help optimize the chain of distribution and prevent any unnecessary losses.
First, keep an eye out for any inefficiencies. Which payment processor do you currently use? Are their fees competitive, or are there perhaps better options? Even a percentage point or two adds up a lot over time. Check in with your warehousing partner and make sure that newly-arrived merchandise is being checked into inventory within a timely manner, as opposed to sitting around in intake for days on end.
Another tip is to streamline order processing. You should have one main piece of software handling the bulk of operations, which should have a robust capability to accept seamless integrations. This eliminates the need for you to go back and forth and manually input or approve transfers of information, saving you both time and money.
Third, make sure to monitor your progress! At the very least, take a few notes from month to month, to make sure that any changes you make are actually having a positive effect on your business and your bottom line. The utilization of demand forecasting can make or break your short to medium term progress, and the best way to predict the future is to have solid data about the past.
Supply chain visibility can make all the difference when it comes to the difference between your business taking off, or struggling to compete in uncertain conditions. By taking a few simple steps, you can cut down on unnecessary costs in your distribution chain. One more bonus step you can take, however, is registering a free account with P2Pseller. We allow warehousing and fulfillment partners to upload their storage space and warehousing services to our open, democratized market, making sure that you can get the best prices possible. All costs are delivered 100% up front, so there’s no need to worry about hidden fees. Sign up today with absolutely no commitment required on your end to see exactly what we can do for you and your business. We’ve got our eyes set on bringing about the ecommerce revolution. We’d love nothing more than to have you on board.