There’s nothing more frustrating than when your existing system/s cannot handle your growth, or adapt to your growing demands. Managing your company’s complex supply chain is no small task, and requires automated processes to keep you informed with accurate, real-time data. In this post, we’ll explore how to get a better handle on SCM details, adapting when things don’t go according to plan, turning your data into insight, embracing change, and sharing ideas. So let’s get started.
1. Follow the Actuals, Not the Averages
Tracking costs throughout your supply chain is difficult without the right tools. Traditional approaches to creating and tracking the total landed cost are often based on estimates of numerous individual costs—average fuel prices, median postage, and delivery charges—to reach your total. As a result, the accuracy of the estimates may not be relied on.
Getting a look into real costs from across your supply chain lets you make educated adjustments that can have a real impact on profitability. A true ERP lets you track landed, standard and perpetual costs, so you have a more accurate view of every product that leaves your facility. From standard reports, you can drill down to specific details like costs by warehouse location.
Plus, an ERP system provides concrete audit trails for tracking cost adjustments, so you can ensure changes are recorded, tracked, and uploaded to your financials.
2. Use Your Data to Make an Impact
To analyze and improve the effectiveness of your supply chain, you need to connect your SCM data with the metrics that matter most to your business. To connect all of these moving parts, you need an integrated business management system. An ERP system lets you capture, translate, and share data all from a single system.
Once your data is fully connected, you need the tools to quickly analyze it to make on-the-fly decisions affecting your supply chain. The right business system lets your people access the information they need—at a high-level or granular-level—right from their personalized home screen, so there is no lull in taking appropriate action.
3. Share Ideas, Not Just Information
Today, collaboration is paramount for supply chain management. Companies focus heavily on maintaining an ecosystem that collects and shares vital information across the organization and with their vendors and suppliers.
So how can you make sure that everyone can actively share data and stay on the same page? By providing people with the best, real-time look into what’s happening now, and give them the right tools to predict what might happen tomorrow.
By leveraging the power of your ERP system, you can gain real-time access to the data and metrics across your supply chain. Plus the ability to identify trends, predict opportunities and make accurate cost and revenue projections.
4. Avoid Potential Disruptions
Volatility in business is an everyday reality we all must manage. It’s a safe bet that most companies have goods and raw materials coming from all over the world, and as a result, it’s critical that you can identify and avoid disruptions.
By utilizing embedded tools in your ERP system, you can look ahead, configure “what if” scenarios, and get a clear sense of how major-or minor-changes may impact your business.
By banding together your financials and supply chain management into one core system, you can see how changes to your supply chain affect everything from open orders to delivery times, inventory, and cash flow. This allows you to predict and contain the impact a supply chain disruption could have on your business and more importantly, your customers.
5. Embrace the Change
After efficiency, adaptability is the most important thing a well-managed supply chain can have. Today’s small and mid-sized businesses must be prepared to change course daily, not quarterly, by scaling up and down as your suppliers, your market, and your margins demand.
Being prepared with a properly implemented ERP system, lets you to adapt your supply chain so it can easily support the addition of new warehouses, the acquisition of new companies, and other major business changes. And using predictive analytics you can gauge the effect these changes will have across your business.
ERP software allows your business to automate core supply chain processes, helps your team become more productive, and adjust to an ever-changing business landscape. As your business continues to grow, move forward confidently with a system - and a partner - that can help guide you, and make sure there are no future constraints and hurdles, which can’t be overcome.
Thanks for reading.