Supply Chain Planning & Management

What is Supply Chain Management?

First, what is supply chain management (SCM)? SCM is the process of controlling the flow of goods and services from beginning to end.

This includes everything from the production stage, where raw materials are turned into products, to the final step, when items are delivered to customers.

The goal of supply chain management systems is to streamline a company’s activities, allowing your business to minimise waste, boost efficiency, and keep clients smiling.

This is especially important in an increasingly competitive market – a seamless process and customer service can really set you apart from other organisations in the industry.

When it comes to SCM, people tend to associate the whole system with logistics. In reality, this is highly reductive, as there’s plenty more that goes into supply chain planning and management to ensure everything is ticking as it should.

For example, today’s digitalised SCM systems include aspects such as material handling and software, with the latter being particularly useful for tracking and monitoring purposes.

In fact, being aware of products’ whereabouts in real time allows all stakeholders, from suppliers and manufacturers to transportation and logistics providers, to be informed about timings and the process’s overall status.

What are the Benefits of Supply Chain Management?

Having an effective supply chain management system in place can bring about a wide range of advantages.

Ultimately, SCM is all about coordinating a number of interconnected activities and ensuring that all processes are boxed off in a timely fashion. With this in mind, here is how a well-oiled SCM system can benefit your business:

• Increase efficiency – A well-organised supply chain planned from start to finish can significantly improve efficiency, getting your end products to the customer faster and more reliably.
• Enhanced customer satisfaction – If deliveries are on time and the whole process is smooth as can be, customers are more likely to be satisfied with their experience – and are bound to come back for more.
• Better collaboration – Establishing a good supply chain management system can favour better collaboration across the board, as all stakeholders will have all the information they need whenever they require it.
• Save money – With a reliable SCM in place, you can pinpoint blockers or issues at any stage of the supply chain process. This will allow you to address any supply chain risks and disruptions on the go and save on unnecessary expenses.
• Improve risk mitigation – Supply chain risk management software can help you analyse the big picture and spot potential dangers or hazards before they happen. This gives you the chance to take proactive action rather than reacting to disruptions, sparing you both precious time and money.

Tech and Tools in Supply Chain Management

Technology can act as a helpful friend when it comes to supply chain management and planning. From AI and automation to robotics and data analytics, there are many innovative tools that can drive your business’s operations every step of the way.

For instance, one of the biggest benefits of AI is that it can monitor sensor data and equipment to highlight the risk of machine breakdown before it occurs. It is often very tricky for workers to spot potential equipment issues, meaning that it is too late by the time they notice a warning sign and take action.

As well as leaving with your costly repairs, breakdowns can slow down your production process, leading to a loss in revenue and unhappy customers. AI can keep you posted on the wellbeing of your equipment at all times so that you can intervene promptly should there be anything that’s not working as it should.

AI and data analytics can also help you with demand forecasting, predicting how popular a specific service or product is likely to become. Based on these figures, you can take steps at a supply chain level to optimise your inventory levels and plan enough time and resources to get your stock prepared for periods of high demand.

On the topic of inventories, tech tools allow you to track your stock content and quantities in real time. They can also monitor the location, storage temperature, and overall condition of your products, meaning you are always informed about everything you need to know.

What’s more, analytics allow you to make conscious, data-driven decisions on all aspects of your supply chain process. From sourcing to logistics, you can make more informed decisions and ensure your operations flow as efficiently and productively as possible. 

Ultimately, supply chain management can do wonders for your business’s efficiency. If you are looking for the perfect solution to store your products and equipment, Cleveland Containers can help you. We stock a wide range of shipping containers in 20 UK locations that can do just the trick, keeping your items safe, out of sight, and easy to access when and if needed.

Fancy learning more? Don’t hesitate to get in touch – our friendly team is always on hand to answer any questions you may have and talk you through our many options.