When you look inward to improve the management in your supply chain, the potential for additional profits quickly reveal itself. Jacques Adriaansen writes for Digital Supply Chain about four ways to use better management to improve your profitability:
- Inventory management
- Supplier cash control
- Operating expenses control
- Customer cash control
All Aboard the Savings Train
Inventory management means more than just keeping stock at a minimum. It means being able to account for order fulfillment and not allowing a bottleneck to happen just because one part is delivered a half hour late. Stock threats must be anticipated. Along those lines, analyze all the automatic processes that go into your supply and payment agreements and determine where optimization can occur. As far as operating expense control, look for root reasons that errors occur in supply orders so that the errors will not be repeated. And for the last item, always be looking to settle customer payments, so seek ways to reduce the time between order and payment.
To learn more, you can read the full article here: http://www.supplychaindigital.com/supplychainmanagement/3579/Four-ways-to-improve-profitability-in-supply-chain-management