Benefits Of A Strong Supply Chain

Some enterprises, irrespective of their size or industry

, perform considerably well. They are successful with low value merchandise, fashionable merchandise or with any other product. On the other hand, there are firms that struggle or appear to do so. When you try and evaluate, you will see that the difference lies in the fact, as to how efficiently a firm deploys their supply chain management.

An excellence in supply chain does not happen just by a chance or accident. Firms with outstanding supply chain management systems have made it a part of their operations and strategy. They are aware that it is always beneficial to be an enterprise that is excelling consistently in supply chain. These organizations understand the actual power of supply chain and know how to use it to their benefit to differentiate and position them in the market against other market players. They are aware of the fact that this will help them to generate sales, profits, attain a greater market share and drive capital expenditures with inventory.

Numerous retailers, manufacturers and wholesalers witness wide swings during economic changes. When the economy is strong, they concentrate on generating orders and sales out the door. Then when the economy gets a little weak, they become unsure what to do. Today eminent service providers have introduced supply management solutions using the Cloud Process that has a order fulfillment process in-built. This helps the companies to see whatever happens in the supply chain and takes place automatically. This offers the companies with set of benefits. They are:-

Helps in reducing logistics/ reverse logistics costs by 30 percent by consolidating shipment and order

Brings down logistics administration staff globally by 7o percent

Enables in automated processing of over 90 percent of orders

Reduces the amount of warehouses from 70 to 3

Reduces stock by 30 percent

Enables real-time visibility into the continuous order fulfillment process flow

Brings down the transport invoice expenses through improved control of carriers" invoices

Minimizes environmental impact through lesser locations and enhanced shipment consolidation

All of the above mentioned aspects help to set up responsiveness and agility that further helps a company to adjust better with the changing market conditions and to some extent even control these forces. At the same time it helps the bottom line while monitoring capital linked up in inventory. However, if you want to transform your existing supply chain to develop an excellent program, then it is essential to assess objectively your activities and partner with an eminent solution provider.

by: brianwarren

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