In today’s turbulent times when most of the organizations are still recovering from the recent recession, every company has learned one crucial lesson, keep the operating costs as low as possible. It includes or it must include reducing the costs associated with transporting the goods to the customer. These costs can be reduced without impacting the efficiency of this service and that can be done by using these 7 fail-safe methods.
- Develop the Right Strategies
The first step to success is developing the right strategies, especially the distribution strategy. There should be end-to-end visibility in the distribution network so that all available assets can be fully utilized. Every best supply chain services providing company in India takes the time to develop the right distribution strategies because it leads to keeping a check on inventory, production facilities, locations, suppliers, and warehouses. It also assists with timely deliveries and makes supplier management more efficient.
- Check the Cash Flow Constantly
You as an owner should keep an eye on all the expenses incurred on availing the supply chain services from a vendor or internal departments. There are many accounting tools that keep a track of how much time you spent on each task and it will allow you to get the data within a few seconds. Just ensure that you enter information regarding vendor bills, staff payments, payments made to logistics companies and other associated costs as soon as possible. Be very sure that the money you spent on this function lets you get a good ROI.
- Ensure Standardization of Processes & Procedures
There is only one reliable way to ensure that the processes and procedures are followed, buying a technological tool like a WMS that tracks every progress of a product till delivery. It also reduces the efforts put in by the staff members as the technology works faster than humans. With standardized processes and procedure, the employees also prefer to know what they are supposed to do at all time, so even if the manager is not there to tell them, technology will. Adopting technology would also negate the need to hire more personnel.
- Save Where You Can
When you are after saving some money, you should ensure that you reduce the waste, opt for better energy consumption, refurbish materials and optimize transport. To ensure that all these best practices are followed, conduct regular audits, enquire why a best practice is not being followed and rectify the situation.
- Use Data
Data is the crux of everything we do now. So when you are working towards ensuring that the products reach the customers on time, you need to constantly track past data reports and find out the time taken for each delivery. Then you need to devise measures to improve the time needed to complete a delivery by reducing lag times, hiring more staff or tracking more effectively. Data is a weapon that gives you an opportunity to ensure that your products reach the customer first.
- Strive for Proper Inventory Management
Inventory management is the backbone of every supply chain services provider. If the inventory is not managed right it could lead to two situations. The first is when you have so many products that the entire goods and the money go to waste as there are no buyers. The second is when your customers need the products but you aren’t able to meet the demand as you didn’t produce enough goods. Both the cases are bad for the business as the first results in loss of money and the second leads to the worst, loss of customers. Use projection tools before production, track the goods and ensure timely delivery to ensure you win customers and earn money.
- Outsource the Function
If you are unable to find the right resources, right staff or the right locations, you can always hire the best supply chain provider in India as an outsourcing partner. The outsourcing company will take a small fee but remove a big worry. It is a cost-effective option as well.