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4 ways in which engineers can optimise their firm’s supply chain efficiency

  • Highlights

  • Implement real-time demand planning

  • Eliminate waste and non-value adding methods

  • Opt for environmentally safe raw materials

  • Align with your business strategy

The Indian manufacturing industry is expected to contribute to 22% of the country’s GDP by 2022due to increase in disposable income, rapid urbanisation and the growth of India’s middle class. As a result, engineering firms are experiencing certain, prominent trends like low-cost sourcing of materials, and customisation. While these trends have proven to be beneficial for manufacturing businesses, anoutdated and erroneous supply chain management can prevent your business from realising its full potential.

Supply chain optimisation can not only position you to reap the benefits of heightened product demand but also enable you to add value by developing a customer-oriented business process. Below are four tried and tested strategies to get the best out of the supply chain process.

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1. Revamp demand planning

As per the A.T. Kearney and CSCMP study, most Indian tier 1 cities are expected to transform into major demand centres with an average GDP of USD 20 billion. Businesses will require rethinking the supply chain business process in order to cater to metro cities, urban, semi-urban as well as rural settlements.

You can utilise automated supply chain management tools for real-time demand planning based on past insights and inventory data. Based on the demand trend, you can customise your pricing, promotional and product strategy to achieve desired goals.

2. Adopt lean methodology

The lean manufacturing process focuses on eliminating wasteand non-value adding methods or activities from the production process thereby reducing manufacturing time and cost. Adopting a lean supply chain process involves a reduction in inventory waste by utilising inventory management tools gathering prompt insights regarding raw material requirement. You can also reduce warehousing and handling cost associated with idle inventory and control wastage of time by employing a single centralised procurement department for all your products.

You can avail the services of inventory management or asset management software for Rs.16 lakh and above. If you are looking to reduce initial your out-of-pocket expense, opt for special engineer loans. With pre-approved offers, the process of procuring loans has become much easier. Check out your pre-approved offer by filling in a few basic details.

3. Design a sustainable approach

With growing consumer demand for environmentally safe products, businesses have adopted a sustainable logistics system, focusing on reducing the adverse impact on the eco-system. Overtime firms have realised the potential of a sustainable approach to create value for the business, increase the scope for innovation and provide early adopters with a competitive edge.

While implementing sustainable changes to supply chain, you should start from the basics – opt for suppliers providing bio-degradable products utilising non-toxic chemicals and recycled water and renewable energy sources.

4. Implement your corporate strategy

A corporate or business strategy defines the major goals and objectives of your business, which remains true throughout all departments. Remember your logistics department does not work in silos, it constitutes an important part of your firm; build a detailed and actionable operating plan to aligning your supply chain goals with the overall business strategy.

First, identify which functional area of the overall strategy is affected by the supply chain process, next measure the current performance of the supply chain process against desired goals. Analyse the difference between the desired and actual result, implement necessary changes, and undertake periodic evaluations to ensure optimal results.

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