Supply Chain Management is THE department in the logistics industry. Unfortunately, it is also highly complex. However, as more and more SCM is being demanded, more and more logisticians have to deal with this issue. So, the most important questions are, how to build this area in a meaningful and successful way – BUT also how to avoid mistakes. That's why we've put together a few points that give you an overview of the most common bugs and key factors for your Supply Chain Management.
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The best Conditions for a Successful SCM
Of course, there are many things you can do to improve your Supply Chain Management. It is important not to stop at your own company’s borders. Acquaint yourself with the processes, optimize your performance and stay up-to-date to actively minimize risk. Here are a few more tips for a successful SCM.
- Set clear responsibilities and process rules.
- In case of problems, involve all areas – in this way, faults in the value chain can be rectified immediately or replaced at an early stage.
- Automate processes through IT systems. This allows you to act faster.
- Honesty should be the top priority! Own or foreign risks, strengths and weaknesses, changes, etc. should always be addressed immediately. Because ignoring even little gaps in the planning cannot lead to successful SCM.
These 3 Mistakes Could Harm your Supply Chain Management!
If you stick to the above points, a lot has already been achieved. However, there are still some difficulties that can occur in Supply Chain Management. So it's important to avoid the following errors.
This point sounds superfluous to many, because in theory everyone has the same goal and should pull together when working together. However, priorities of the different companies can often also lead to various goals. So discuss your goals and adjust them to each other if necessary.
Costs, profits and risks are not fairly distributed:
These three points may be different for any company that participates in your supply chain. That is why it is particularly important here that they are fairly distributed. This is the only way to create trust and motivation to achieve the common goal.
Low value on contracts:
At the SCM, a lot of internal data is exchanged with other companies. Even if this is a necessity, data security in the contracts should be prioritized accordingly. Other clauses, such as e.g. in the event of failure or profits, should also be specified here.
A common thread that runs through these points is that in the case of two or more companies working together, many people meet with various opinions and goals meet. That's why it's so important that there's a constant, honest flow of communication to achieve an efficient and successful supply chain.
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