How is important is a well run supply chain to your business operations? It’s all about creating the most efficient way to move products from their point of origin to the customers who need them. It may sound simple at first, but supply chain management systems are complex and require a great deal of planning and skill in implementation. We can help evaluate your current best practices and develop supply chain solutions that will deliver the results you need. To talk it over, just email us now. 

In the meantime, here are some supply chain basics to get the conversation started:

What is a supply chain?

A tightly integrated supply chain is a system of contractors and businesses that provide raw materials, manufacturing, transportation, distribution and warehousing, in addition to retailing services.  Efficient supply chains are important in providing high levels of customer service, while achieving profit goals and sales targets.  The heart of integrated supply chains lies in information technologies, such as enterprise resource planning systems. An optimized supply chain will give your business many advantages, such as:

  • More Flexibility:  Tight supply chain integration gives management the operational flexibility to react to external pressures, such as changes in customer demand or a competitor’s actions.  Companies can be aware of their competitor’s plans months in advance by gathering information through their supply chains.  And then, be in a better position to respond faster.
  • Effective Inventory Management: An optimized supply chain results in less overstocking or understocking—both important advantages.  Understocking could leads to lost customers, while overstocking could result in product obsolescence and higher storage costs.

For example, tight integration of a retailer’s supply chain allows the business to adjust inventory levels weeks or even months ahead of anticipated changes in customer demand, ensuring just the right amount of stock is on the shelves. Tightly integrated supply chains also make just-in-time manufacturing possible (where companies manufacture and assemble products only as orders are received).

  • Profit Margins:  Operational flexibility and tight inventory management result in lower costs, leading to higher profits.  By being able to react quickly to market developments, businesses can stay competitive and grow their top and bottom lines.  Tight supply chain integration also offers insight into your suppliers’ operations.  This promotes stronger collaboration, which reduces costs and drive profit margins.
  • Supplier Management:  Tightly integrated supply chains can also alert you to potential problems.  For example, if one of your suppliers is having cash flow issues, you can start looking for an alternative supplier if the need arises.

At TMG Advisors, we have decades of experience helping businesses just like yours succeed with key business operations such as supply management. To learn more about how we can help your business and drive stronger growth, email us here.