Supply chain managers identify consumer needs and help with the distribution of goods. They understand supply and demand and value meeting needs efficiently. And, of course, one of the markers of efficiency is the cost of doing business. Learn how supply chain managers can reduce costs.
1. Hire a Great Third-Party Logistics Provider
A third-party logistics provider (3PL), also called a managed logistics provider, can provide you excellent savings on transporting freight. While you should compare the costs of 3PLs, you shouldn’t forget to consider the ways a managed logistics provider benefits your business.
A 3PL that loads, transports, and delivers freight in a timely manner helps your bottom line. And a knowledgeable and experienced 3PL provides a valuable service that you’ll appreciate when issues arise with the freight or when there’s a shift in the industry.
2. Protect and Manage Inventory
Inventory loss isn’t just wasteful; it raises your costs. If inventory spoils, gets lost, or becomes damaged, then you can’t fill orders. Protect your inventory and learn what factors contribute to waste. Then, make changes to address the problem.
On the other hand, having a surplus of inventory can create a problem too. Just as you want to avoid inventory loss, you should not over-order. Too much inventory can complicate your warehouse processes and tie up capital that you could use for other tasks. Follow the best practices for inventory management.
3. Optimize Warehousing
You can also reduce your operating costs as a supply chain manager by optimizing your warehouses and warehousing processes. Use warehouse space efficiently through smart organization, vertical storage solutions like mezzanines, and minimal but effective packaging.
Use automation to ensure that employees can efficiently follow the best practices for storing and moving inventory. A warehouse management system can track inventory and the putaway process.
4. Hire Reliable Employees
The efficiency of the supply chain depends on reliable employees. A supply chain manager who can connect with the people they direct and organize can play an important role in getting everyone on the same page for achieving company goals. Work closely with your supply chain coordinators and warehouse and logistics team leads. You can then clearly communicating plans and progress.
