Using a Supply Chain In Your Business

The process of taking an order from a customer to the point that you deliver it to them is a detailed one. However, if you manage it correctly, it can save you money as well as strengthen your relationship with your customers. Watching the item from beginning to end while calculating the time it takes to make and the materials used to do so is called a supply chain. Here is how it would work in your business.

Planning Orders

One of the difficult parts of supply chain management to keep under control is Demand Planning. This method predicts when a customer will need a product and therefore issue an order for the materials to produce it. It will set production into motion and have the items ready for shipment at the approximate time your client will need them delivered. However, it can be a challenge to manage since your customer’s needs can fluctuate and they might demand them sooner. This can lead to rearranging your production schedule and possibly making another order late. Your own supplier may be out of what you need when you want to start on the next order which can cause complications as well. However, once you have the planning near perfect, it can create very satisfied customers.

Communication Between Departments

Organize a meeting between your sales and production departments every month to discuss what orders will be coming up and the materials that will be on hand to fulfill them. Encourage constant communication between these two groups especially when it comes to changes from the customers or if an issue on the production floor may cause a shipment to be late. Instruct them to be aware of where an order is in process and to watch it through each step from taking it in customer service through manufacturing and finally to delivery. Document clear procedures on how to replenish the supplies that you need to operate so that something that is vital is kept from being held up due to an issue with purchasing.

Optimize Your Manufacturing

Set up a plan to streamline the way your production flows through the plant. If you can carefully organize the items you need for manufacturing and when they will be delivered to you as well as the invoices you have received from customers that you need to fulfill, you can streamline the processes your production floor uses to make your final product.

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