Supply chain plays a crucial role in the success of many businesses. The supply chain links numerous components that are involved once the buyer places an order. It constitutes the suppliers who provide the raw materials, the transportation of these raw materials, their manufacturing, and the delivery of the final product.
Thus, supply chain management is a critical point of concern for many companies. 57% of companies believe that an efficient supply chain gives them a clear advantage. However, to develop an efficient supply chain is a task easier said than done.
The supply chain has evolved tremendously over the years, and it is no longer an afterthought. Companies have started to invest more in developing an effective supply chain system. Companies across various sectors spent an estimate of 10% of US GDP over supply chain management.
However, the global supply chain is still far from perfect. The system had its weaknesses, which were exposed by the Covid-19. The pandemic caused a global economic slowdown, and almost every industry observed a dip in its growth.
The supply chain was one of the worst affected fields of the economy. The global supply chain depended heavily on China due to its lower rates. The outbreak of Coronavirus forced governments of many countries to enforce strict restrictions. These restrictions directly affected the operations of global supply chains.
As the world recovers from the effects of COVID-19, many countries have lifted some of the restrictions. Industries are gradually resuming their normal operations. However, it is high-time for companies to reevaluate their supply chain model.
An efficient supply chain brings several advantages to the table. Hence, an early investment in improving your supply chain will yield great results in the long run. 79% of companies with efficient supply chains witness higher revenue growth than the average.
If you are still not convinced as to how a better supply chain can help your company grow, here are five reasons that prove the same.
1. Complete Visibility Over Your Operations
An efficient supply chain also ensures complete transparency in your supply chain. Supply chain visibility means that you can track every component of your supply chain that are in transit. It allows you to track all your operations and activities conveniently.
There are several devices that you can use to track your motor vehicles and their routes. In fact, in the UK, motor vehicles governed by EU rules have to use a tachograph. However, with adequate tachograph analysis, you can use this compliance to your advantage. A tachograph can help you optimise vehicle routes and improve driver productivity.
2. Increase Your Efficiency
A good supply chain can help you enhance your productivity in many ways. With technologies such as automation and real-time tracking, you can automate many tasks that would otherwise require manual efforts. It will not only help you save time but also reduce human errors.
Moreover, an efficient supply chain will also help you forecast demand and improvise accordingly.
3. Reduce Your Overall Cost
Delivery costs are one of the biggest concerns for B2B companies and rightfully so. Transportation of materials can be quite expensive. Shipping costs reached a whopping $21 billion in 2017 from $11.5 billion in 2015.
Supply chain management can considerably reduce these costs for you. According to a study, companies with efficient supply chains had 15% lower supply chain costs.
4. Cope With Adversity
The outbreak of Coronavirus caught the world by surprise, and it didn’t have any significant plans to deal with such activities. Similarly, you can face such adverse conditions in the future as well.
A good supply chain helps you maintain a healthy relationship with your suppliers. You can recognise the suppliers who you can rely upon in case of an emergency. Thus, preventing any disruptions in the supply chain.
5. Improve Customer Satisfaction
Your supply chain is your biggest asset to ensure customer satisfaction. If you can track the different components of your supply chain, you can share the same information with your customers. Thus, giving them a real-time update of the status of their orders.
With an efficient supply chain, you can also guarantee faster delivery to your customers. Hence, with a better supply chain, you can deliver products faster and at a reasonable price to your customers.
An efficient supply chain could be the missing piece of the puzzle of your company’s growth. There are several ways how you can improve your supply chain, and using modern technologies is one of them. As low as one-third of companies use technology in supply chain management.
However, the numbers are certainly going to increase significantly in the coming years. Adapting to these changes beforehand will keep you a step ahead of your rivals. To do so, you can trust Samsara to provide you with the best fleet management software in the market today.
Samsara is a fleet management solution that makes use of the most advanced technologies to help you track your fleet efficiently. Samsara’s services are equally productive for both small-scale and large-scale organisations. Thus, regardless of the size of your fleet, you can efficiently track your vehicles and monitor their performance.