Anyone who has ever looked for a job knows the phrase “It’s not what you know, it’s who you know.” No matter your field or role, it’s easier to find work with good connections. That same concept applies all across business. Nobody can go it alone; we all need help.
Your supply chain is one area where this is universally true. Every organization needs supplies, parts, equipment or some other components to do it right. These days, especially in competitive sectors, it is essential to maintain an efficient supply chain from start to finish.
These seemingly small details can make all the difference when it comes to meeting projections and hitting goals. If you want to win in your industry, you need to streamline your supply chain. Here are three fundamental tips that can help you get it done.
1. Practice Goldilocks Principles
In today’s just-in-time economy, few enterprises want to overstock goods. The more you store, the more space you need, and that equates to more investment and more ongoing costs for warehousing, management and everything that goes along with maintaining stockpiles.
On the other hand, you never want to run out of the essentials — that could lead to a true disaster. Because of this, most companies tend to keep a little more around than they need, while trying not to go too far the other way and create unnecessary waste.
The key is to strike the right balance. Not too hot, not too cold — just right. If you take the Goldilocks advice to heart, this should keep everything on track. That way, you will maintain a streamlined supply chain in all aspects of the business.
2. Diversify Your Sources
For some things, sourcing is easy. Certain parts, supplies and even equipment are little more than a commodity. But finding the right balance can become trickier when key parts are difficult to obtain consistently from a reliable source.
In certain areas, there may only be a few good providers in the entire region who consistently have what you need at the right price. Then, even when you do find the right supplier, something will inevitably go wrong at some point.
No matter what, you need to ask a few important questions: Can you find what you need at a moment’s notice? Do you have multiple suppliers? Are backup options available if your key provider goes belly up? Remember that even long-standing, successful partnerships can hit a snag. You will always be better protected by having secondary sources.
3. All the Pieces Matter
When looking at a supply chain, most executives only pay attention to the top-line, big-ticket items. That certainly makes sense on some level, especially when these are the items that make up most of your expenditures or generate the bulk of your revenue.
You can’t overlook anything, however. Be sure to have a good handle on everything and understand that even something as small as an o-ring, for example, can have a major impact on your supply chain.
If you don’t have the right line to the right manufacturer, you could quickly find out that what seemed like a little part can end up being a big problem. This is always true — and even more so if you need custom products at a moment’s notice. Don’t forget the details.
Streamlining Your Supply Chain
A lot of business success comes down to fixing problems and overcoming weaknesses. The supply chain is no different. The more you work at it, the more resilient and streamlined it will become.
Start by striking the right balance with your orders and suppliers. Diversify your partnerships and make sure to always have backup providers ready — before you need them. And don’t focus so much attention on the top-line items that you forget to deal with the smaller aspects of the supply chain that could prove just as important down the line.
If you can get all that right, you will instantly have a stronger, more efficient supply chain. That, in turn, will ensure that you have one more key area of strength as you work to improve the overall business and meet your key goals.
