You can’t think of operating without data-driven supply chain management. It facilitates the end-to-end smooth transferring of data, goods, and services starting from procurement to delivery to the end consumer seamless. Alone data is unable to maintain the smoothness of supply chain management. Other factors make the supply chain management robust: good vendor, cordial relationships with suppliers, good relationship with logistics service providers, proper cost control, and using effective supply chain technologies.
Many organizations are using solutions based on technology that is defined by the term supply chain finance. It is done to enhance their business efficiency by bringing down the financing costs. Here are 5 top benefits of effective supply chain management that your organization could use to work on their efficiency.
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Enhanced collaboration: Transferring information is a vital factor that makes supply chain management so feasible. If the information is not transferred properly across the supply chain, a communication gap is ought to happen. It could be detrimental for the organization. Nowadays, integrated software solutions help to eliminate this problem. The transferring of information becomes seamless. Companies get a better picture of the supply chain starting from the beginning to end with the help of these integrated software solutions.
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Better efficiency: If your company gets real-time data regarding the availability of raw materials, your company will be able to eliminate the manufacturing delays that might get the better of its performance. It helps in developing a contingency plan to avoid unnecessary panics. These are triggered when the products are out-of-stock, and consumers return empty-handed. Smart automation systems that leverage data to keep away from delays help create a positive brand image in the minds of the consumers. For instance, banks nowadays use channel financing to suffice the fund needs along the supply chain to maintain a fluid Business flow. Again channel financing is a unique finance mechanism to finance the channel partners, who also happen to be vendors, distributors, and more.
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Enhanced quality control: Companies ensure better quality control when they keep control of their direct suppliers. These companies also keep control of the suppliers working for their direct suppliers. As a company, the quality criteria should be defined. This way, the suppliers can meet the requirements. Some companies carry out frequent audits or ask for documents to verify whether the supplier is complying with all the quality guidelines or not. It is best to implement a management operating system that indicates timely delivery, rate of rework, amount of scraps, and more at the suppliers’ end, final quality of the product, responding the resolving the complaints on time, and more. It helps in understanding which supplier is performing the best, and that way, businesses can decide what is best for them.
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Meeting the demand rate: If a retailer’s want is fulfilled within time, they will naturally order more with high hopes that the requirement will be met. A study suggested that if a link in the supply chain that there is an increase of 7% demand, they then place more orders with their suppliers, and ultimately the factory which is fulfilling the demand notices at least a 20% increase in the rate of the order. The supply chain leaders who have access to real-time and integrated data along with proper information can respond to demand in the market and changing market conditions, immediately.
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Better risk management: Analyzing what is happening overall and the details facilitate companies to devise their contingency plan. They can take proactive steps to avoid the negativities and challenges. For leaner operations, companies also try to understand the potential threats in the supply chain and try to mitigate those.
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You can also avail of an unsecured business loan as an alternative to supply chain finance and can get funds up to Rs.45 lakh with minimal documents. Bajaj Finserv, one of the leading lenders offers collateral-free business loans with easy eligibility and quick approval. This NBFC also provides personalised loan deals on its products such as business loans, personal loans and home loans for speedy processing.
