Effective supply chain processes are essential for the smooth running of organisations that produce goods or services.
However, in recent years, several factors have impacted the supply chain of many UK-based businesses, including increased administration of import and export costs, supply shortages due to global events, and labour shortages in the sector.
With the support of Jigsaw’s specialist supply chain management services, you can implement a process that is efficient, cost effective, and streamlined.
This article explores seven benefits of optimising your supply chain processes, showing how efficiency can lead to cost savings, increased customer satisfaction, and competitive advantages.
Reducing costs is crucial for a profitable, sustainable business.
Effective supply chain processes can help you save on operational outgoings in the following ways:
Inventory management
Efficient inventory control systems and management software help reduce carrying costs, prevent stock shortages, and optimise inventory levels.
Demand forecasting
Using detailed data to predict future demand can help avoid overstocking or under stocking.
Supplier consolidation
Reducing supplier numbers and negotiating improved contracts with your remaining suppliers can reduce procurement costs and improve supplier relationships.
Transportation and logistics
Route optimisation, shipment consolidation, and real-time tracking systems can reduce transport costs.
Digitalisation
Digitising documents and automating processes can reduce mistakes and help save on administration costs.
Warehouse operations
Efficient warehouse layout and automation improve the flow of goods and reduce handling time
In short, a streamlined supply chain process cuts inventory and resource waste, saving you money
Improving your supply chain management increases customer satisfaction.
Faster delivery times help you exceed customer expectations, while consistent quality assurance ensures all products are handled carefully and delivered as expected.
Excelling in these areas will help you build trust with your customers and develop a reputation for reliability.
With an estimated 60 million eCommerce users in the UK alone expecting a fuss-free shopping experience — it’s never been more critical to deliver goods on time and intact.
Modern, efficient supply chain processes offer access to real-time data that can make a genuine difference to your business. For example:
Read our case Yunex Traffic case study to see how we prioritised workstreams to reduce stock by 62%, mapped out best-fit SIOP process, and benefitted our customer by £250k per year.
Improved supply chain efficiency allows you to price your products and services more competitively. And more competitive pricing means you’ll attract more customers.
Additionally, efficient supply chains enable your business to build a reputation for dependability and innovation, opening up potential for new product lines and markets.
Environmental impact and ethical product sourcing are key considerations for modern consumers.
A recent report from The Round Up shows that 78% of consumers feel sustainability is important when shopping. Additionally, more than half (55%) will pay more for eco-friendly brands.
By reducing emissions through optimised routes and waste reduction and ensuring your supply sources are sustainable, you can positively impact the environment and meet growing consumer demand for eco-conscious business practices.
Effective supply chain processes allow you to adapt to events like Brexit, pandemics, and global instability. This ability to pivot helps keep you ahead of competitors and reinforces your position as a market leader.
Meanwhile, a well-functioning supply chain also allows supplier diversification, minimising the risks of depending on a single source.
Jigsaw Business will equip your team with the know-how and tools to be risk alert and fix issues before they harm the operation. As a result, you’ll have a dynamic, transparent, less vulnerable supply chain that’s prepared for any market or industry challenges.
Optimised supply chain systems and processes ultimately support business growth by paving the way for easier expansion into new markets.
Improved processes give you the infrastructure you need for the future, allowing you to adapt to changes in demand and prepare for technological advancements and regulation changes.
Efficient supply chain processes are a strategic necessity for businesses that produce goods and services.
Optimising your supply chain offers a range of benefits, including significant cost savings and the ability to scale and grow.
What’s more, with the need for an efficient supply chain heightened by factors such as Brexit, changing regulations, and the growing consumer focus on sustainability, streamlining your processes will help you stay compliant and meet customer demands for ethically produced goods.
The result? A business that’s ready for anything.
This preparedness builds customer trust and loyalty and allows you to forecast more effectively, reduce environmental impact, and take advantage of new opportunities.
So, if your business hasn’t already reviewed its supply chain processes, it’s time to set the stage for long-term success.
Book a free consultation with a Jigsaw Business supply chain expert to discover how we can help you save money, increase customer satisfaction, and reduce risk.
