Having a great idea for a product is one thing. Turning that idea into reality is another. Lots of people profess to be the “idea guy,” but at some point, someone has to sit down and figure out how everything is going to work, how you’re going to manufacture this product, and how you’re going to ship it. Understanding supply chain management and the intricacies behind bringing your product to market is almost as important as the product itself.
Supply chain management is the network of the people, businesses, technology, and resources that have to come together in a cohesive manner in order to produce and sell your product. And “cohesive” is a key word in that sentence. Without proper chain and logistics management, your costs will rise while your business efficiency plummets.
Your supply chain management process starts with raw materials that you need to manufacture your product. You’ll be surprised to find out how many different materials and smaller items need to come together before you can start manufacturing your product. The supply chain ends when the product finally reaches the hands of your customers.
So what are some of the ways that you can improve your supply chain management? For one thing, you should be segmenting your consumer groups. When you break up your customers into more unique segments, you can tailor supply chain solutions for each segment. Your supply chain management won’t look the same for every one of your suppliers, so it’s important that you look at each individually and find the ideal way to move your product.
You should also be implementing tracking and mobile systems so that you know where your inventory is at all times. Tracking your product allows you to find out where bottlenecks occur with suppliers and increase the efficiency of your supply chain. You never want to realize that you’re not sure where your inventory is at a given moment. Technology such as RFID, warehouse automation systems, warehouse management systems, and mobility are all at your disposal for tracking and monitoring your product.
As well as tracking your product, you should be analyzing all the data that you obtain from the beginning of the supply chain to the end. Collect relevant information on all different aspects of the process–warehousing, transportation, and all costs associated with your decisions. This will help you to understand where your money is going, and whether or not you’ve chosen the most efficient methods for delivering your products to consumers. When you have the right information available to you, you’ll begin to see what’s working well, and where you can improve.
Supply chain management is an essential part of making your business successful, but it can be overwhelming for many new business owners trying to bring their products to market. If you think you could benefit from some expert knowledge, then contact Pivot International today. We can help you find the best supply chain management solutions for your product, so call today.