A business doesn’t just grow by increasing its profits. It also progresses and stands out by reducing its expenses. A supply chain is one big domain where there is a lot of room to cut costs and reduce cash outflow. In this two-part mini-blog series, we will discuss some measures you should consider to drive down your supply chain costs.
Automation for Inventory Management and Manufacturing
Automation has significantly improved and streamlined supply chain activities. Your SME should also consider automation for inventory management and manufacturing. Embracing automation surely involves higher upfront costs. However, you will be able to cut down your supply chain overheads by a big margin.
Consolidate Multiple Processes on a Single Platform
It is important to consolidate different supply chain processes on a single platform. For instance, your entire procurement department should work through a single application or software. From sorting out categories to creating and dispatching POs and managing vendors, your procurement team should be able to carry out all the tasks on a digital platform. This consolidation will help you carry out your supply chain processes with a lesser number of workers, which means lesser operating expenses.
Pick Outsourcing Where It Makes Sense
If the opportunity cost estimation allows you to work with any third-party contractor for any supply chain task, don’t hesitate to use their service. There is no rule to run all supply chain activity through in-house resources, especially when outsourcing can save you some serious costs.
SimplyPurchasing is robust procurement management software that works on many fronts to improve organizational performance. Its consolidation and digitization of procurement processes also play a part in making your supply chain cost-efficient.