Improving supply chain management in an SME
In the business world, efficiency in operations has become vital to stay ahead in the contest. It is always wise to reduce for better running rather than spending more on it, that’s what we would call being efficient!
Such effectiveness is required in each department of a company to make it fully efficient, from raw material manufacturing to supplying it to the end consumer.
While large industries remain poised to reap the benefits from optimized supply chain management (SCM), these are also adopted by the small-scale industries or SME’s. When it comes to techniques, it works for all industries, no matter the size!
With increasing innovations in technology, no one is blotted out and it reaches each and every life on the planet. Same applies to the SME’s where they are nearly able to use the same technologies which are used by large industries which kind of evens them out. Here are some techniques that can help SME to improve their SCM:
1. Cloud-based systems
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Source=numbie.com
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The main setback for an SME is said to be the budget. By employing cloud-based operating systems, everything in the process can be done over the cloud and the SME’s wouldn’t necessarily require an IT team. This would even free out some space for internal staff and will result in operational savings. By using SCM on the cloud, an SME can have a team focusing on the software and hardware networking operations of the firm.
2. Identify innovative partners
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Supply chain managers must identify which of their suppliers possess the capability to bring innovations in the product and go-to-market strategies. These suppliers help improve the processes in an effective manner which eventually reduces the processing steps and also the cost. Here, the procurement organization should become a less of process executioner and more of a process enabler.
3. Segmentation
Segmentation is a key aspect of SCM. Segmenting does not only help you categorize your customer base, but it helps you in supplying the various products to various customers. In most SME’s, there is only a single traditional way of segmenting the customer base and it might have been old too. Proper use of segmentation techniques can help them segmenting in many different ways and criteria. This type of segmentation makes the SCM processes frictionless.
4. Real-Time Reporting
Reporting is vital for tracking any process or work. You need to know the progress of a process to ensure it’s headed in the right direction. Management should have systems for real-time reporting of the SCM processes to get an entire view of it. They can use different software for this, which can also be used in mobiles for an on-the-go update. It is important to ensure that the software works on all the mobile and computer operating systems.
5. Choosing an ERP
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Enterprise Resource Planning (ERP) is important and it is needed to be selected wisely by small companies and SME’s. The importance of cloud integration was given above, but ERP is one application that keeps control on all the other applications. Some SCM software even works as a module for SMEs in accounting and other courses.
6. SCM training for employees
When desiring an efficient SCM process, the internal training of employees in concepts of SCM and logistics is a must. You can’t ask a person to sculpt marble where he isn’t a sculptor or has no previous experience of it. If an SME desires to improve its SCM, it has to train its employees for it. When everybody is aware of the methods and the concept, everyone can know their role and it can result in better functioning of the company’s SCM.
Improving a small business supply chain management couldn’t be possibly a mammoth task. Implementing these techniques in an SME can be a great way to ensure that their supply chain and logistics work efficiently by minimizing costs and increasing profits which will ultimately result in a successful business.
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