In the manufacturing industry, it is important that you keep your costs low and serve your customers as well as you can. As material and labor costs are increasing significantly each year, and you will also have to comply with new regulations, it is important that you look through your supply chain every now and then and make it more productive and cost-effective, with the customers’ needs in mind. Below you will find a few tips on how to get started.


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Lean Principles

Lean management was introduced by Toyota in the beginning of the last century and has been used by many large companies since. It focuses on risk reduction, continuous productivity improvements, and simplifying projects. If you are not familiar with Lean principles yet, you might want to send one of your managers to a training, or take one on yourself, so you can transform your business to be able to deal with the challenges more efficiently.

Just In Time

Another approach that can help you improve your supply chain management is Just In Time. JIT or Just In Time supply chain management will allow you to plan your different processes according to the demand and the availability of your resources. You can save money on labor cost by not having to pay overtime when you are dealing with urgent orders, and make sure that everything is utilized in the most efficient manner. You can also save money on storage costs; do not store products longer than necessary. If you plan ahead and have companies like move your products when they are needed somewhere else, you can save time and free up resources.

Integrating Systems

The key of effective supply chain management is making sure that all systems are talking to each other and information flows in every direction. If you have your procurement system working with the order and customer management software, you can plan better and satisfy the needs of your customers at the same time. Make sure that you are talking to an IT specialist about integrating your multiple applications.

Working with Your Suppliers

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It is also important that you communicate with your suppliers and gather feedback. If you align your priorities and allow your systems to communicate, you can save a lot of money on admin and make sure that they are aware of your requirements and meet your expectations with regards to quality and quantity.

Use Big Data Predictions

To maximize your productivity, you will also have to make use of the data and information available for you. Get in touch with a data analytics expert, so you can create demand predictions, costing comparisons, and calculate your additional costs for storage and delivery. This way, it will be easier to identify new methods of making your manufacturing business more efficient and customer-focused.

Companies often neglect the task of improving their supply chain to meet customer demands and expectations better. If you don’t look for development areas, you are risking being left behind and losing the competition.

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