Your business is your brain child. It’s the result of your hard work, sweat, and long hours in the office. However, one bad decision can often be the undoing of all your efforts! Don’t get us wrong, mistakes and risks are part of the learning curve of businesses. But there’s a fine line between mistakes and negligence.
And businesses often stray towards negligence without even realising. That’s because while looking at the larger picture, we tend to forget about all the vital cogs of business that run behind the scenes. And within all the cogs, the supply chain is undoubtedly the most important, and strangely, the most neglected too.
Don’t worry, even the largest of businesses are guilty of that! Small supply chain mistakes have often come back to haunt some of the recent e-commerce giants (not taking any names!), and wounded their market prospects.
But lucky for you, the doctor is in! We have pulled up a list of symptoms that might help you diagnose any ailments in your supply chain, and help you take a few precautions, just in case. Anything sounds familiar?
“Let’s automate that, let automate this – let’s automate everything!”
It’s always great to be a person who looks at things from ‘the glass is half-full” perspective, but too much optimism in supply chain automation can leave a sour taste in the mouth. Adapting automation for large businesses is harder than it looks. It can cut deep into your pockets for ROI that you can’t justify. So, don’t just rush headlong towards the shiny future! Instead, take a step back and test-drive it first for a select few processes.
“WHAT? That’s our freight bill?!”
Ignorance is certainly not a bliss when it comes managing freight-costs. But despite the hype around the logistics market, there’s not much of a push to understand the figures behind freight costings. For all you know, you could be paying extra for some other shipper’s pallet space. Or, the wrong carrier could be charging you for pallets where a pricing-per-kilogram would suit you better. We know it sounds too simple to miss, but trust us, a lot of companies are missing out on these finer details.
“Don’t worry, we’ve got enough space”
Rule #1 in supply chain management: inventory burns cash faster than your trucks burn gas. Having a bludgeoning inventory will make you a crowd favourite, but not with your bank balance. Over-stocking to avoid running out of stock has spelt disaster for many companies. You’re essentially left with over-dated stock that isn’t paying your bills. So, don’t go over-board. Inventory is a tough animal to tame, and it needs a dedicated team of experts to call the shots.
“Supply chain data? Yeah, we’ll look into it later”
The supply chain is treasure trove for critical data, provided if one’s got their eye on it. Truck movement can help optimise delivery networks. Tacit data like emails interactions can find out kinks in processes. Last-mile costs, first-mile costs, transaction data and many more, are some KPIs that make up the tip of big iceberg that is supply chain data. But not a lot of companies are willing to invest in capturing all this data, and hence, find themselves scratching their heads over business decisions gone wrong.
Hang on, there’s another common mistake that you should be aware of: not finding the right logistics partner for your business. But lucky for you, we’ve sorted that out for you! Reach out to DTDC for an evolved logistics experience, and more http://dtdc.com/