A properly designed, well-thought-out supply chain is essential to businesses looking to keep up with the changing demands of the UK marketplace.
An optimised supply chain reduces risk, increases transparency, improves sustainability and makes your organisation more cost-efficient.
However, reducing supply chain costs is no mean feat. As the UK continues to face post-pandemic and post-Brexit pressures, high fuel prices and inflation make it challenging to save on supply chain costs.
As such, many businesses are examining their supply chain’s resilience and looking for effective ways to cut costs.
With the support of supply chain management specialists like Jigsaw Business, you can implement an efficient, cost-effective process that improves operations and increases customer satisfaction.
This article explains how to optimise your supply chain for cost efficiency.
Supply chain optimisation starts with a detailed performance analysis.
Look for inefficiencies like delayed deliveries, inventory bottlenecks, and rising logistics costs before mapping out your entire supply chain to understand how resources flow.
You should also closely monitor key performance metrics, including:
Benchmarking your processes against industry standards will help you identify areas for improvement. Meanwhile, asking suppliers and partners to review your processes will help uncover inefficiencies.
Crucially, you must highlight your assessment’s action points and use data-driven solutions to improve your supply chain.
Enterprise Resource Planning (ERP) systems or supply chain management software like Jigsawsafe™ help you collect and analyse real-time operational data. These tools give insight into cost drivers, process delays, and overall performance.
Introducing technology and automation into your supply chain has several benefits, including:
Automation tools such as robotic process automation (RPA) and predictive analytics help businesses optimise routes and reduce human errors.
Meanwhile, digital tools like Jigsawsafe™ enhance supply chain management by providing real-time data to monitor performance and identify cost-savings.These advanced technologies help companies deliver energy-efficient, eco-friendly products, helping them meet customer demand.
Inviting a professional to assess your operations can give you insightful advice about automating your supply chain and embracing new technologies.
Read more about the surge in trials for our digital supply chain management tool to explore how we can help enhance operational efficiency.
Cooperating with suppliers improves reliability, reduces lead time, and helps prevent overstocking. Meanwhile, partnerships allow joint forecasting and demand planning, fostering favourable contract terms.
Does that make building collaborative supplier relationships an overlooked way to enhance operations? We think so.
Strong partnerships improve product quality and reduce costs, creating a more flexible, resilient supply chain. You can build trust and develop long-term, cost-effective supply chain links by collaborating with suppliers and seeing them as integral to your operations.
See how our work with Bladon Micro Turbines improved supplier communication.
Including components, raw materials, and subassemblies, inventory levels can make up to 75% of a more manufactured product’s cost.
However, you can achieve a significant reduction in stockholding costs by implementing proven practices.
The Just-In-Time method aims to minimise inventory levels, enabling you to order and receive stock when you need it. This approach reduces storage costs and waste, eliminating unnecessary overheads. JIT also allows you to react to shifts in demand, making your supply chain more agile and cost-effective.
Alternatively, the ABC analysis classifies inventory into three categories:
‘A’ – high-value items with low turnover
‘B’ – moderate-value items
‘C’ – low-cost, high-turnover items.
This method encourages businesses to prioritise resources for high-value products, reducing inventory holding costs and improving order fulfilment.
Employing similar strategies will help your businesses optimise stock management and balance costs. Additionally, they’ll improve inventory availability and operational responsiveness, leading to a more cost-effective supply chain.
Modern customers demand environmentally friendly products, so the supply chain must be green, eco-safe and energy efficient.
Fortunately, embracing sustainable supply chain practices can deliver substantial cost savings, including:
Companies can also consolidate shipments and use electric vehicles to reduce fuel consumption and CO2 emissions.
You can reduce waste by using eco-friendly materials and introducing recycling initiatives. Alternatively, working towards a circular economy model will help you align with sustainable initiatives. This model designs products for reuse, remanufacturing or recycling – ultimately reducing production costs.
Jigsaw Business Group can help you streamline processes and leverage technology.
Contact us to enhance your supply chain sustainability.
We’ll help you incorporate technologies like real-time monitoring systems to track carbon footprints, optimise resources, and make data-driven decisions that reduce costs and environmental impact.
Beyond cost reductions, a green supply chain will also enhance your reputation and attract eco-conscious customers, ensuring long-term profitability.
Ultimately, optimising your supply chain for cost efficiency takes specialist knowledge in several areas, including:
Supply chain consultants like Jigsaw Business Group has the knowledge and experience to deliver supply chain cost efficiency for your business.
Get expert advice on improving manufacturing processes, supplier management, and production planning so you can achieve sustainable growth.
Adopt the latest technologies, improve forecasting, and make data-driven decisions.
Equip your business with tailored solutions that streamline operations and support long-term growth.
