Effective supply chain management helps to gain competitive advantage, optimise costs and improve key financial indicators within the company. Achieving these benefits, however, requires a coordinated approach, supported by the use of innovative IT systems to facilitate the control of individual processes and enable their further optimisation. How to manage the supply chain effectively?
Supply chain management refers to activities carried out both inside and outside the company. It includes activities such as organising the flow of goods and services, problem-solving, decision-making or resource management. Its aim is to give the company a market advantage by meeting the needs of the final customer in the most efficient and complete way possible. Supply chain efficiency is directly related to the automation of individual processes. Today, the latest technologies are essential for synchronising production plans with deliveries or speeding up order fulfilment. Innovative IT systems combined with modern technical facilities produce the best results when it comes to supply chain management.
Effective supply chain management should be based on:
1. Quick execution of tasks
The efficiency of the supply chain depends on the time it takes to complete the entire process of the flow of goods from supplier to customer (or vice versa for returns). Adequate infrastructure, especially that of IT, is required to increase the speed of execution.
2. Harmonising the functioning of the various units in the supply chain
The different links in the supply chain differ in terms of the time required to complete tasks. Harmonisation reduces stock levels and therefore reduces costs.
3. Ensuring the flow of information
Supply chain management should strive to ensure that information flows between the links in the right form, place and time. In particular, issues such as ensuring adequate levels of stock of materials or raw materials, determining lead times or guaranteeing cash flow to secure stocks are important
4. Recognition and fulfilment of the needs of each link in the supply chain
In order to ensure the efficiency of the supply chain, it is necessary to focus on the needs of each individual unit and, at the same time, on everything together in order to create a coherent system of measurable value.
What is supply chain management? Above all, being organised in such a way as to allow real-time data exchange. Right from the start, supply chain management should be based on building strong relationships, gaining full transparency and integrating information flows with customers and suppliers. This will help to improve the coordination of the flow of goods and reduce transport costs. Additionally, it will speed up sales and improve customer service. Transparent logistics and supply chain management are nowadays possible mainly thanks to IT systems. The key here is modern technology. It should coordinate the various links in the chain in such a way that everything is interlinked: from planning to warehousing, sales, transport and customer service.
The organisation of transport is one of the biggest challenges of supply chain management. The answer is CargoON Freights: a tool that allows cargo to be allocated automatically, whether on the basis of individual contracts or regular co-operation. By entering into a partnership with us, the shipper does not have to worry about where to look for carriers – an algorithm finds them for him, based on predetermined guidelines. Thus, it provides security and flexibility, as well as maximising the use of existing capacity, which translates into savings.
Make an appointment for a demo, try out CargoON and find out what effective supply chain management is all about!
The energy crisis and the recession that is already making itself felt bring great challenges for all businesses. Is there a pill for the crisis? How to ensure supply chain efficiency in difficult times? Watch the webinar and hear from TSL industry experts.
Buzzwords like Logistics 4.0 or the digitalization of transport have been with us for many years. Technology in the TSL industry today must enable the collection and use of data to support collaboration in the operation of businesses. Without this, it is hard to respond to the challenges facing supply chains today.
Black Swans, as we know, are unpredictable events for which it is impossible to prepare. We are already able to talk about them openly, but we keep “feeding them” without changing our management methods. Many companies are still operating according to old patterns, postponing important challenges, such as the digitisation of the delivery process. In the face of increasing threats to supply chains, it seems quite risky. It brings to our mind a game of chess, when after a round has been played you need a new deal with completely new rules, but one that allows for a potential win. So are supply chains really in transition?
- Key Account Manager, Centrum Pali Sp. z o.o.
- At Centrum Pali, we set our sights on digitalising logistics processes and warehouse management many years ago. This strategy enables us to optimise our work, reduce costs and improve relationships with partners. If the driver does not waste time queuing for loading, we are more likely to have a fruitful cooperation. Every carrier is valuable to us, so we focus on quality and technology.
The impact of the war in Ukraine:
- 140 countries are affected by disrupted supply chains.
- 30-50 percent of companies have stopped operations.
- Reduction in the supply of steel, iron ore and grain.
- Mines in the Black Sea.
- The Kiev region lost more than 20% of its warehouses.
- Limitations to the New Silk Road operations.
- Lack of power supply hinders use of Ukrainian railways
- Expansion of rail infrastructure and transhipment terminals.
- Adaptation of wagons and lines to European dimensions.
- Construction of warehouses.
- Setting new logistics routes.
- Improving border capacity.
- Resumption of maritime transport.
- European orientation.
- Poland as a hub for reconstruction.
- New routes, new carriers: Turkey, Kazakhstan.
- The unknown fate of the New Silk Road.
- The use of Polish ports and the LHS railway.
- Warehouses in eastern Poland.
- Ban on entry into Russia (transport via Belarus).
CEO, System Transport Sp. z o.o.
We need to start managing resources wisely, optimising what we already have and coming to terms with the fact that we are living in extremely difficult times. This requires a focus on making the most of the potential we have while being ready for further efficiency gains.
Head of Business Consulting, CargoON
I encourage you to gather the data to feed the decision-making centre. Key to this is the use of technology, but also the use of platforms that enable a multi-partner supply chain to be linked. This allows us to save time, be more flexible and optimise processes. Good, informed decisions, backed by data – pay off.