Saving Money thru Supply Chain Optimization
Supply chain optimization is all about getting the product into the customer’s hands when they want it while spending as little money as possible. Since supply chains involve so many organizations and processes to get the product to the customer, it can be easy to overlook possible ways to optimize and save money. In this article, we will provide you with three ways you can save money through supply chain optimization.
Identify Reorder Points
If you want to save money, it’s better to create a specific marker for when supplies need to be replenished. Ordering more than you need in advance with the expectation that you will eventually use the ordered supplies is not cost efficient. Determine reorder points so that you can save money and optimize your resources.
Utilize data analysis
Identify physical and information flows in your supply chain and use data analysis to help eliminate unnecessary steps in the production process. Data analysis can reveal the inner workings of your supply chain and determine which areas need to be improved to increase revenue and avoid errors and prevent waste.
The Lean Six Sigma approach to optimizing the supply chain relies on quick responses to changes in supply and demand during times of crisis and business cycles. As a business, you need to ensure that you are being flexible with your supply chain so that you can respond to the satisfaction of your customers.
Supply chain optimization is a critical aspect in reducing costs and increasing revenue, especially during the COVID-19 crisis. By providing Lean/ Six Sigma Coaching and performance insights and analytics, our expert consultants here at Adonis can help you grow and optimize your supply chain to its fullest.