3 important factors for building a strong supply chain

A few decades ago, the supply chain used to be dependent on the number of…...

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A few decades ago, the supply chain used to be dependent on the number of suppliers a business could utilise as well as the degree of cost management executed for each organisation. However, this is no longer the case, especially with end customers seeking fast access to quality products. This has made it imperative for businesses to cultivate a robust supply and logistics network.

Here are three of the most important factors that you should consider when creating fool-proof and customer-centric procurement and logistics processes:


Supply relationship management

You need to spend time and effort to nurture your relationship with suppliers. This is the only way to create a symbiotic partnership. This approach not only benefits your organisation, but it is also advantageous for your customers. Above all, it keeps your supply intact — particularly when the market is unstable or you want to improve organisational performance. Make your suppliers feel important by including them in decisions pertaining to the supply chain if the outcome will have an impact on the supplier both financially and operationally.


Focus on supply chain sustainability

If you want to develop a strong supply network, focus on making it sustainable. For this, understand the procurement process and how it impacts the network. Also, work to strengthen the relationship with suppliers. This, in turn, will help to make the different tiers of the network more transparent and you will be able to assess them for loopholes more effectively.


Risk management

Study and analyse the market and the pressures it is experiencing. Market intelligence will help you mitigate risks. Remember, good contract management is also essential for risk mitigation. The contract should benefit the organisation as well as suppliers. This will ensure optimal cost control along with superior supply and performance management.

The economic landscape is evolving, and this affects the way any organisation conducts business. To help secure the future of your enterprise, create jobs in the local community and minimise energy usage and pollution — it is necessary to manage the supply network efficiently and productively.

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