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- 3PL Links Case Study: Retail (Home Improvement)
As a staple in the home renovation industry in Canada, 3PL Links’ customer has been the go to store for do-it-yourselfers and contractors alike for more than 15 years. This big block retailer operates over 75 stores in convenient locations across Canada and is headquartered in Ontario, Canada. At any given time the customer can stock as many as 40,000 home improvement products; tailored to the communities they serve. 3PL Links’ customer caters to do-it-yourselfers, as well as home improvement, construction and building maintenance professionals. Under its roof, the retailer provides various value-add features such as installation services, where the homeowner can choose to have qualified professionals complete home renovation projects for them. In addition to the installation services they provide, a tool rental service is available at selected stores throughout the nation. Read the full retail home improvement case study here
- Outsource Your Warehousing and Distribution to a Reputable Logistics Company
Outsourcing warehousing and distribution to a 3PL (Third-party logistics provider) carries with it numerous benefits for the enterprising business owner or manager. It’s a long held rule of savvy business: If someone else can do it more efficiently, it’s probably worth letting them do it. By leveraging the strengths of a 3PL in optimizing your warehousing and distribution, you can refine your business to new heights—and new profits. Here are just a few reasons to consider third-party warehousing and distribution: Shared Costs Shared Costs Sharing a resource means sharing the expenses—without losing anything in the exchange. With third-party logistics, the equipment, resources, and man-hours that would go wasted if you handled the matter in-house end up tasked to others; that increased efficiency would put money in your pocket even if a 3PL had nothing else to offer over in-house warehousing and distribution. Specialists Specialists The people working at a 3PL firm are specialists, from top to bottom. Specialists in warehousing and distribution, and the administration thereof, with the latest tools, techniques, and industry news at their fingertips. Who do you expect to be better at maintaining a top-notch logistics solution: someone who handles logistics as part of a broader set of duties, or a specialist who wakes up to logistics, eats logistics for breakfast, works logistics all day, has logistics for dinner, and dreams of logistics overnight—because that’s what it takes to keep their clients happy? When you put specialists to work on a task, instead of leaving it as a mere part of the responsibilities of a general worker, you get better results: faster, more efficient logistics. Faster, more efficient warehousing and distribution makes companies money. Reduced Investment Reduced Investment If you don’t already have your own logistics worked out, or they’re in dire need of an update, then you’re facing a far smaller investment working with third party logistics. There’s no land or equipment to buy, no licenses to pay for, no staff to train, no wasted hours anywhere at all. For some companies, having a fully equipped and trained in-house logistics division might make sense, but does the investment required to reach that point make as much sense? Less Administration Less Administration Any time you outsource to a reputable firm, you find yourself with less paperwork, less overhead, fewer legal considerations and fewer time wasters period. By outsourcing your warehousing and distribution, you offload one of the most paperwork-intensive segments of any company. You’ll still have the records and data you require whenever you require it—but managing it, maintaining it, filing it, those won’t be your concern. Improved Focus Improved Focus A company that spreads itself too thin loses something in the process; we talked about the benefits of setting specialists to a task such as logistics, but it’s worth considering the fact that generalization cuts both ways: If your employees, top to bottom, can focus entirely on their products, marketing, the business of THEIR industry, without putting themselves to the problem of logistics, then they in turn become more specialized, more focused, on the tasks that are most important to the company’s success. Final Thoughts Final Thoughts In the end, outsourcing your warehousing and distribution comes to one word: Efficiency. You improve the efficiency of your logistics, you improve the efficiency of your non-logistics workers, you seize on the improvements of efficiency possible when you share a resource you quite simply don’t need 24/7. When you don’t have to buy equipment, don’t have to train logistics personnel, don’t have to distract your workers with those issues, then your bottom line benefits. It’s just common sense.
- 3PL Links Case Study: Food & Dairy
Working with world-renowned multinational companies is always a privilege. Since 2010, 3PL Links has been working with a prominent dairy company with operations in Europe, Latin America, North America, Australia, China and South Africa. With over 100 years of brand heritage in the Canadian dairy industry, our customer is committed to the health and wellness of Canadians and markets a variety of high-quality food products under multiple brands. Read the full Food & Dairy Case Study Here
- 5 Things to Consider When Hiring Transportation Companies
Many businesses rely on transportation companies to move their product across the country or borders because they know that lowering transport costs is critical to maintaining their business’s healthy bottom line. If your business is examining the costs versus benefits of outsourcing its freight requirements, here are five important factors to consider. Experience Experience Since on time delivery is so critical to your company, do your homework to ensure that the transportation companies that you are considering have the experience in the specific areas that you need. Not only should the transportation company have experience in transportation in your area, but a transportation company in business and with a track record matters, too. A transportation company that can demonstrate excellent customer service over the years is more likely to deliver those same results to your business Industry Expertise Industry Expertise Look for a company that is an expert in the kind of transportation you want, and have answers to questions that you might not have thought about yet. If you require domestic freight services at a truckload or less, find a company that specializes in that area. Or, seek out a transportation company that has acquired expertise in all types of transportation, local and international. Your transportation company should also demonstrate knowledge of the industry's state of the art practices, technology and freight services. Your choice to outsource your freight requirements is a decision that should free up time for your management team to spend time on revenue-generating activities, not cause worry that your supply chain is falling behind. Customization Customization Your transportation company should be able to use their experience and expertise to customize your needs. Every business is different, and your particular freight requirements should be their top priority, not trying to convince you of a once-size-fits-all approach. Technology Technology In the competitive and global marketplace, you need access to information about your products on your schedule. An experienced transportation company will be working with the latest technology including satellite tracking. Your shipment information should be no further than a computer click away so that you will know what your transportation company knows in real time. Growth Potential Growth Potential Your transportation company, with its experience, expertise and technology, should save you money in transportation costs in addition to freeing up your employees to concentrate on what they do best. These savings should also cause your company to grow. Can your transportation company grow with you? Growth potential is a crucial factor since your business’s growth will rely on uninterrupted product deliveries, or expansion to new markets. The transportation companies that you are considering must be able to penetrate new markets with your business. Your business can expect to lower its freight and shipping when you find an experienced transportation company with industry expertise, customization, technology and growth potential.
- Logistics Management: An Integral Part of Any Business
Logistics management is the part of the supply chain management that plans, controls and implements the storage and movement of goods and services (and all their related information) from a point of origin to the final destination or point of consumption. If done correctly your company will benefit from efficiency, cost saving and will be known for great customer service. As the demands of your market change and grow, your company needs to be able to change with it and still maintain your high standards of quality, price and on time delivery. Making the decision to work with a logistics management company is a great first step to ensuring you are set up for future success. A logistics company such as 3PL Links is an excellent example of a logistics management company that will put your needs first. It is not a transportation company that is simply trying to sell you their shipping services. It is a company that understands the need to learn the specifics of your situation and to come up with the best solution possible that is customized for your company. The first step when you work with a logistics management consultancy is to meet with them to identify all your logistical roadblocks. The consultancy will know how to drive the knowledge gathering with you to a point where it becomes clear where the weakest links in your supply chain management system are. Then the solutions can be found, whether it is in the methodology of pricing, dispatching, operations, auditing or customer service. For very large organizations that have global delivery needs, a pilot project is commonly set up to test out the proposed solutions. Depending on your industry, you will inevitably have some very specific needs around volume, handling, and timing - and these are all best figured out in a small scale implementation of a system before rolling it out to the entire operation. By its nature, 3PL Links has an organic approach to its solution creation - always staying on top of the fine tuning needed as the system is implemented. Logistics management companies focus on the following: Logistics management companies focus on the following: Sourcing appropriate vendors who can provide appropriate transportation facilities Selecting the most efficient routes for transportation Determining the best deliver method for your goods Creation of an Enterprise Resource Planning, or ERP software system tailored to your company requirements Once the solution is working on a small scale, it can then be rolled out to the full spectrum of the company. The consultancy would work with you to set your key performance indicators and then you can consistently measure how well the solution is working. The best part about working with a logistics management company like 3PL Links is that your account is treated with the same care and diligence that you would have if they were on your internal payroll. They are integrated with you and your team for long term growth together. As new technologies come on the market - the logistics management team will upgrade your system to keep on the cutting edge. You will never have to worry about paying for a single one time consultancy solution that is outdated in a few years, the relationship will be beneficial on a continual basis with no knowledge loss over time. A logistics management company is integral to any business since it will free up internal staff to continue to do what made the company successful in the first place - focus on the creation of great products. Why learn a whole new business around logistics when you can simply hire a team of experts who specialize in it exclusively?
- 5 Reasons You Should Consider Warehouse Services from 3PL Links
When your business is transporting goods from one place to another, it is crucial you have a secure warehouse to place these goods. The warehouse should be guarded around the clock to ensure your goods are not vandalized, damaged or stolen; and if you have special storage needs, such as climate control, the warehouse should be equipped to offer the service. If goods get damaged or a theft occurs, it is not just a monetary loss to your company, it is also is loss of credibility in front of your customers due to delayed deliveries. These are issues that can cost your company dearly, both in terms of money and reputation. You should choose your warehousing partner with care. Without the right warehouse services, your business can suffer in many different ways. Below are 5 reasons why you should choose professional warehouse services offered by 3PL Links. Expertise and Experience 3PL Links employs highly trained professionals who ensure all your logistics supply chain requirements are handled seamlessly. The company brings a wealth of knowledge and expertise and hence, is equipped to provide warehousing solutions to suit your needs and budget. This storage method minimizes risks and also ensures expedient and fast service. You never have to contend with inexperienced and untrained employees which increases the risk of loss and damage. Climate Controlled Storage Facilities If you require climate controlled storage for your goods, 3PL Links is the ideal choice. The company has multiple facilities to store your goods, be it during transit or until they are delivered to the end destination. With climate controlled warehouse services, 3PL Links ensures your goods are protected from any damage while they are warehoused and stored. Furthermore, the state-of-the-art climate control technology used by 3PL Links the storage temperature can be customized to suit the needs of a customer. Superior Security One of the biggest fears in a warehouse is theft. 3PL Links offers world-class security measures to ensure your goods are kept safe and secure during the time they are warehoused. Hence, you never have to worry about theft. The security measures in place also do away with lost, misplaced, damaged and vandalized goods. Flexibility and Scalability The warehouse services offered by 3PL Links are flexible as well as scalable. If you require more storage space, you can opt for it easily without driving costs through the roof. On the other hand, if your inventory goes down due to seasonal variation, you can reduce your storage space, thereby cutting your warehousing costs. 3PL Links offers several warehousing options to suit the needs of different customers. This eases your stress and allows you to focus on other important business decisions. Container Stuffing and De-Stuffing A part of warehouse services is container loading and unloading. Usually, a business has to hire employees to load (stuff) and unload (de-stuff). 3PL Links has highly trained professionals to carry out container stuffing and de-stuffing at your premises as well as the warehouses. This minimizes the risk of damage and theft and you can breathe easy knowing professionals are in-charge of loading and unloading your goods. Overall, 3PL Links offers customized warehouse services to ensure you enjoy smooth and cost-effective logistics. Once your distribution process is in place and all hurdles are removed, you can offer timely deliveries to your customers. For more information on how 3PL Links can provide your business with comprehensive, secure warehousing services, feel free to fill out our online form , or call us today at 1-877-660-3362
- When you should Consider Consulting with a Third Party Logistics Provider
Any company that sells products must have a reliable delivery system in place to ensure that all items are delivered to customers on time and in perfect condition. For this to be possible, the delivery system must include warehousing, picking, packing, and shipping operations, which are gathered under the generic name of logistics. Unfortunately, managing logistics is a major challenge for many businesses. Without streamlining logistics operations, a company can easily run into cost overruns, which will negatively impact its overall activity. How can you reduce the risk of cost overruns and outright failure? By simply consulting with a third party logistics provider, or 3PL. When Should You Approach a Third Party Logistics Provider? When Should You Approach a Third Party Logistics Provider? Most businesspeople who need help to coordinate their supply chain activities find third party logistics providers very useful. For instance, if you do not know how to manage picking, packing, and shipping operations, how to process returns and inventory adjustments, and how to find the most profitable trade routes, it is time to look for a reputable and experienced 3PL. Another situation in which you may consider approaching a third party logistics provider is when you have no time to handle logistics. However, an increasing number of organizations are turning to 3PLs especially when they want to improve their competitive position. Over the years, 3PLs have gradually extended their activities, offering a wide variety of services at low cost and ensuring superior outcomes compared to the companies performing logistics activities in-house. By turning logistics operations to a third party, you can benefit from sure-fire methodologies and techniques, which will save your organization a lot of time and money, while increasing customer satisfaction. How is this possible? Most 3PLs have the advantage of using well-established strategies along with dedicated distribution centers and storage facilities. Additionally, they collaborate with numerous trucking and shipping companies, which means that they are able to ship products more efficiently than the organizations operating within other industry sectors. Frequent deliveries reduce inventory levels, enabling superior warehouse management and control. Also, freight and shipping costs are almost always better than what a company can secure on its own for the simple fact that a third party logistics provider moves a lot more merchandise. Another great thing about outsourcing logistics to an external party is that it will manage different operations so that you can focus on other business aspects. When you do not have to deal with things you know nothing about, you can spend more time and energy trying to find new customers and make them happy, which will eventually translate into more business. Even more important is that a third party logistics provider offers incredible convenience and flexibility, being able to scale space, labour, and transportation according to your company’s needs. If you are running a seasonal business, for example, a 3PL can help you manage industry ups and downs efficiently, while allowing you to only pay for what you use. With a reliable third party logistics partner on your side, you will enjoy stress-free transitions even when expanding into new markets. Opting for a reputable and experienced third party logistics provider is one of the best things you can do to streamline logistics operations, regardless of how complex they are. Even if you are an expert in logistics, it does not hurt to consult with another expert, who may suggest additional logistics alternatives you might not have considered. Now, if you intend to explore the best logistics options for your company, we invite you to contact our friendly advisors at 3PL Links.
- 3PL Supply Chain Management Metrics to Look at
Supply chain management metrics are designed to give your company the analytical tools to assess the performance of each piece of the supply chain. The matrices should be straightforward to use, but aligned to specific business requirements. Three important matrices critical to effective supply chain management and bottom lines are: carrying cost of inventory, inventory to sales ratio, and inventory turnover. Carrying Cost of Inventory Carrying Cost of Inventory The carrying cost of inventory is one of the supply chain management metrics that measures the costs of keeping inventory, whether over the short- or long-term. Carrying cost of inventory can help you to determine expected profits on current inventory, and if more product, or less, is required to ensure income levels or to cover expenses. It can also impact more strategic decision-making like sourcing. Each individual piece of inventory has an associated cost. The cost includes the total cost from actual storage and freight charges, to costs related to storage if applicable, for example labour and insurance costs, or perishability or obsolescence, to name a few. These costs add up to the cost of inventory per year, which is the total cost of inventory capital, service, storage and risk costs. To compute the carrying cost of inventory metric, you plug numbers into the ratio for the inventory carrying rate (the cost of owning inventory per year) divided by the average inventory value. Inventory to Sales Ratio Inventory to Sales Ratio A crucial aspect of your supply chain management metrics is linking supply chain to current economic conditions and predicting how well a company will withstand an unexpected change in the economic forecast. The inventory to sales ratio -- the dollar amount of inventory value divided by the dollar amount of the sales value -- can do just that because inventories rise in good economic times, and fall in times of economic decline. The ratio is calculated as the cost of goods sold divided by the average inventory (or sales divided by inventory), so the lower the ratio the more efficiently the inventory is being managed. When the ratio starts to rise, it can be indicative of declining sales, or the need to reduce the inventory. This metric is linked to inventory turnover, discussed below, and when analyzed together, the two supply management matrices can provide you with a window into the company's financial health. Inventory Turnover Inventory Turnover In general terms, inventory turnover is one of the supply chain management metrics that determines the efficiency of the supply chain since it measures how quickly inventory is sold, and how many times over it is sold annually. The importance of the inventory turnover ratio calculation is that it shows efficiency in two key areas of supply chain management: buying and sales. When inventory grows because of purchases, and cannot be moved quickly, it increases inventory carrying costs so efficient and accurate purchasing is key. And, inventory turnover reflects sales abilities. The goal is to provide a higher inventory turnover rate to give an accurate useable number of inventory turnover days. You compute the ratio as cost of goods sold divided by the average inventory. The average number of days that it takes for inventory turnover can also be calculated by dividing the time it takes by dividing 365 by the number of days it took to sell the inventory. Understanding the relationship between inventory and bottom line is crucial to your supply chain management. With these three metrics, your company can easily and effectively measure profits on current inventory, gain a window into economic conditions, and assess your supply chain efficiency.
- Should you Consider Supply Chain Segmentation?
Business success is contingent on maintaining a competitive edge. Maximizing supply chain activities allows businesses to operate at highly proficient and effective levels. Supply chain management integrates all facets of business operation and production, including product development, procurement, construction, and logistics. Businesses are discovering that they are unable to maximize customer value using a single supply chain strategy. The same supply chain stratagem will satisfy some customers but the desires of other consumers may go unfulfilled, and for others, the costs may be too great. As a business owner, should you consider supply chain segmentation? The answer is yes. Supply chain segmentation means grouping services or faculties together to meet an explicit set of requirements. Segmentation allows businesses to meet their customer needs at the lowest cost. It provides an organizational framework that consistently delivers value and business control the complete life progression of a product. Supply chain segmentation generally follows these steps: Step One - Group Products and Delivery Channels Step One - Group Products and Delivery Channels The first step for segmentation involves grouping products and delivery methods and creating a matrix, where all combinations are represented. Each combination is considered an individual supply chain. The distinct supply chains are rated using business revenue factors of gross profitability and sales. Step Two - Simplify Step Two - Simplify Supply chain segmentation entails separating the supply chain into specific divisions. Generally this process requires a thorough analysis of customers buying habits. What are customers buying? How are customers buying products and services? What groupings are profitable? What are customers preferred delivery methods? The analysis leads to specific information that reduces the complexity of providing distinctive customer value, product quality, and delivery capabilities. Analysis provides a business with customer segments that leads to advantageous supply chain strategies and operational plans that are in sync with customer demand. Some parts may be eliminated because they do not contribute to the bottom line. Operational procedures will include a responsive strategy that combines customer satisfaction, customer service, speed, and order completion. Step Three – Prioritize Step Three – Prioritize The third step involves combining the findings from the first two steps. Using the matrix prioritization and the results from the customer analysis, determine the various trade-offs between cost, speed, and service. Step Four – Alignment Step Four – Alignment Aligning the individual supply chains is the fourth, and most difficult, step. This step involves merging suppliers, product manufacturers, inventory management, product warehousing, and business procedures. Fortunately, supply chain segmentation incorporates the use of standard parts in most product design. Segmentation involves increasing the level of configurability in the design for the purposes of increasing customer value. Standard components are the common base for a wide variety of product configurations. The segmentation allows businesses to use the same manufacturing base for all supply chains eliminating the use of different production facilities for different customer segments. This leveraging of production reduces costs. There is a solid relationship between badly managed supply chains and profit loss. Global supply chains are particularly challenging to administer because of the fluctuating demands for products. Supply chain segmentation offers a tremendous opportunity for increasing customer satisfaction and reducing costs. Third party logistics companies can help businesses obtain the competitive edge with supply chain segmentation by lowering operational and administrative costs. Some of the services provided include: Complete order fulfillment On-line inventory management Detailed management reports Complete consolidation and de-consolidation procedures Complete transportation services Dependable warehouse services Many companies don’t realize that they need to segment their customers and they currently treat everyone with the same supply chain strategy. Supply chain segmentation is the effective management of supply chain events to increase customer value and realize a viable competitive advantage. If you're looking for supply chain management & logistics solutions in the US, Canadian or Mexican markets, give 3PL Links a call today!
- LTL Industry Best Practices for Cross-Border Shipping
Cross-border shipping is an integral part of the global economy and an especially important component of the commercial relationship between the United States and Canada. The United States Census Bureau reported that in May of 2014 the U.S. imported over $30 billion in goods from Canada. If your business is looking to engage in any kind of cross-border shipping, it is important that you ship your goods in an efficient way that also complies with all the pertinent regulations for this type of commerce. Include the Proper Documents Include the Proper Documents The first step in making sure that you can properly engage in cross-border shipping is getting your documents in order. Important things that you need to have include: Your bill of lading that is filled out with all the necessary information Evidence of the purchase of the goods, such as an invoice or purchase order A license to import/export: this is usually only required for products that are regulated, like firearms, tobacco, etc. It is a good idea to keep all of these belongings together in an envelope or file that is easily accessible in case your driver needs to provide any of these documents to officials at the border. Arrange the Shipment with a Customs Broker Arrange the Shipment with a Customs Broker In order for your shipment to get across Canada and into the United States, you must have the help of a customs broker. It is important that you deal with a dependable customs broker that has a history of doing good work for clients. Ideally you will be able to find a customs broker that operates 24 hours a day so that you can get your goods cleared across the border even if it is the middle of the night. It is also important that you find a customs broker that uses the most efficient methods. For example, a broker that uses Remote Location Filing (RLF) will be able to save you time by electronically transmitting data about your cargo from a remote location. This will allow you to get your cargo across the border much more smoothly. Pay All Necessary Taxes and Fees Pay All Necessary Taxes and Fees The United States Customs and Border Protection determines duty rates on shipments that are entering the United States. In order to get the exact duty rates for the items that you are bringing into the United States, you must have detailed information about your goods and how and where they were manufactured. If you use the right customs brokerage for your cross-border shipping, these fees can usually be taken care of electronically. Cross-border shipping must go smoothly for companies that are sending goods into the United States so that these companies can keep sufficient revenues flowing in. If your business is looking to minimize the complexity of shipping LTL goods across the U.S. border, it is important to find a dependable provider for help interpreting the many regulations that govern this type of transaction.
- Checklist for Efficient Global Supply Chain Management
Efficient supply chain management on a global scale is a handful for even the most logistics-savvy companies. When you are entangled in the global market there are a lot of blind corners and gray areas. There is going to be a lot of days that you wish that the straight line you drew between two points on the whiteboard was a reality. With that being said, global supply chain management is a difficult yet not impossible task. Here is a checklist of tasks that every business needs to follow to maintain the efficiency of their global supply chain. Global Supply Chain Management Checklist Global Supply Chain Management Checklist [ ] Always Start With Risk Management: Operational Risk Management is more than just a buzzword. It has to be the starting point of every logistics operation. While it may not be possible to disaster-proof every movement, you cannot know what contingencies you will need to prepare for if you do not take the time to consider the events that will have the most disruptive effects upon your operations. You need to consider how you will do business if your critical systems are rendered inoperable, what steps to take to respond to these catastrophes, and how to resume operations as quickly as possible. [ ] Assess Your Vulnerabilities: Now that you have taken the time to ask what could go wrong, take a close look at where the weakest links in your supply chain are. You will need to respond accordingly, investing time and money into improving linkage that is most likely to become a critical break in your supply chain. In some cases, you may find that eliminating and replacing the vulnerable aspects of your business may be the only course of action that can be justified. [ ] Upgrade Your Infrastructure: Outdated infrastructure will cause more problems for you than every other supply chain challenge combined. Falling behind in terms of information technology, manufacturing, storage, electronics, or distribution can happen faster than you think. Companies like Amazon are investing in cutting edge infrastructure and raising customer expectation to the point that the risk of falling behind has never been greater. [ ] Create A Comprehensive Logistics Plan: Now you should be prepared to plan out your supply chain with confidence. You will not be able to do this alone. You will have to engage your suppliers as well as your end-users in the planning phase if you want a fully integrated solution. A lot has been said about sustainability of supply chain in the last few years, but it is easier said than done. Make it easier by involving all stakeholders in creating a shared outcome desirable to all parties. [ ] Set Realistic Goals: Your plan should be achievable and timely but not so timid as to hold your business back from its full potential. Take the risks that you know you can mitigate and make the moves that you know you can pull off. Nothing is ever accomplished without some risk, and being as audacious as you possibly manage may separate you from your competition. [ ] Always Keep An Eye On Costs: As you execute your plan, always keep one eye on the costs involved and see if there are any areas where you can reduce them. Budgeting on the high side may be necessary when you are upgrading infrastructure or initiating new links in your chain, but when things are up and running that is when you need to institute financial efficacy with as much determination as you would logistical efficiency. If you need any further assistance in the area of your Global Supply Chain Management & Logistics Solutions , Visit 3PL Links for comprehensive logistics solutions.
- 5 Common Mistakes in Supply Chain Management
Studies show that the supply chain accounts for over half of the total cost of production. Successful management of the supply chain therefore requires the ability of a company to recover quickly from disruptions. The supply chain is even more complex than it was two decades ago so it is critical that you remain vigilant, steer clear of common mistakes and appreciate the benefits of proactive management. That said, here are 5 common mistakes in modern-day supply chain management; 1. Prioritizing functions by spend 1. Prioritizing functions by spend Quantifying by spend is probably the most common mistake in supply chain management. Simply put, you look at your suppliers and prioritize functions based on who supplies most of your goods and services. So, even if you have 20 suppliers, you’ll want to prioritize say five suppliers whom you’ve always spent 80 percent of your budget on. This strategy worked well until fifteen years ago when outsourcing was proliferated. Today, supply chains come in layers where you source from several suppliers. You can no longer rely on a single source for your parts otherwise these parts would become a single point of failure in the supply chain. 2. Accountability framework mistakes 2. Accountability framework mistakes If your CEO is to hold the Chief Procurement Officer (CPO) responsible for disruptions realized in the supply chain, you must also give the CPO people to hold responsible for these disruptions. And please, make this clear by including in the organizations constitution or similar documents. It is apparent that very few organizations bother to assign supply chain disruption duties to anyone at the operational level. This often causes confusion when there is a disruption and no specific employee can be held responsible. Managers are advised to assign supply chain disruption responsibilities to specific persons and ensure that these people are properly trained and provided with proper tools and infrastructure to effectively discharge their duties. 3. Lack of or limited visibility across dependencies in the supply chain 3. Lack of or limited visibility across dependencies in the supply chain Many managers still struggle to uncover where their supplies are coming from, according to recent studies. What this means then is that these managers don’t yet know their true supply chains. For instance, a part that the manager thinks is dual sourced might in fact be single sourced somewhere on the higher levels of the supply chain. Even worse is the fact that most managers admit to lack of visibility in their supply chains but are very reluctant to find ways of reversing this situation. 4. Short-sighted management 4. Short-sighted management A fully optimized supply chain will experience several risks including but not limited to delivery delays, supplier issues, quality problems, increase in demand, and supply shortages. While these are expected challenges which all managers should be aware of and prepared to tackle, it is nearly impossible to address all of them at a go. You’ll be required to solve the challenges dynamically – one after another. This can deny the management the chance to proactively assess problems in the supply chain as a whole. And when this happens, managers often make a big mistake – de-prioritizing risk management. 5. Proactive rather than reactive management 5. Proactive rather than reactive management You often find managers effecting a change just after a crisis that didn’t make a large impact or because they managed to recover quickly. While it’s actually encouraging to get up after a fall, this is never the best management approach. Supply chain organizations are encouraged to develop the right infrastructure for proactive management where you create clear paths of communication in case of a crisis and use rewards rather than punishments to encourage employees to play their roles. Looking for a Solution? 3PL Links can take care of your supply chain management & logistics needs. We offer solutions for any industry vertical. Give us a call today!












