Answer to Question #313884 in Management for Modi

Question

There is a multinational company XYZ that operates in the retail business. The company also launched a couple of new products with their label. Customer demand is increasing because the company has a good product mix. Whereas the level of actual performance is not that much increased. As you are appointed as supply chain manager, suggest some strategies to the organization that ultimately increase performance. 

Answer 1

In the efforts to increase the level of actual performance, as the new supply chain manager I will use the following strategies;

1] Standardize - Having a standardized ERP system will increase efficiency while saving time and money. Another benefit is that employees will share a standardized system of tools, which will increase accuracy, encourage teamwork and reduce miscommunication.

2] Increase Transparency

Waste, mistakes and even fraud are permanent supply chain strategy problems that can be fixed with the right ERP system. One of the biggest problems of inventory management is reconciling the software numbers with a physical inventory count. There are always products or units that are forgotten about or simply disappear. Increasing internal SCM transparency is critical to reducing unexplained inventory and financial losses.

3] Gain Data Insight

Decision making for your supply chain strategy depends on accurate and timely data and information. Having real-time reports available at all times will provide valuable insight into the supply chain health of your manufacturing business. ERP software allows both users and management to be able to instantly access inventory, purchasing and production data for critical decision-making purposes.

4] Automatic Purchasing

Continually monitoring inventory levels takes up too much time. Newer ERP systems with Supply Chain Management (SCM) functionality feature automated purchasing. This means that the ERP software can be programmed to automatically place orders with vendors when inventory levels drop below a certain level. A critical part of any supply chain strategy is being able to pre-emptively maintain inventory levels. Automatic purchasing will free up employees to concentrate on other important duties.