Improve supply-chain management to grow your bottom line
When it comes to boosting profitability, businesses typically follow the same old route of using cost-cutting and austerity measures as their primary method of attack. From simple measures like cutting back on stationary or paper The repercussions of these actions can quickly increase until they directly affect the workforce, ranging from compulsory overtime to lower bonus or pay increases and even job loss.
Cutting backs that directly impact the employees are usually temporary solutions. If a business decides to reduce staff, the company’s performance usually plummets after–misfortunating any increase in bottom line which might have been expected.
Instead of focusing on cutting costs as a strategy to increase profits Companies that are forward-looking look at making improvements to the core business areas. One of the most important areas that could impact the bottom line of a company is its supply chain. For manufacturing businesses it is an essential element of company’s operations, and enhancing it will result in dramatic and swift improvements to the bottom line.
Incoming
- Make sure that there is always enough stock available to fulfill orders. In the event of a downtime, it can be costly.
- Review all new delivery thoroughly to make sure you’re getting the correct quantity of raw material
- Keep an organized and tidy warehouse to ensure your raw materials can be easy to find
- Put money into modern technology and a well-trained warehouse staff.
Outgoing
- Consider rail for non-urgent deliveries. If time isn’t an issue, rail could be much more affordable than road to transport products.
- If you can ensure that road deliveries are synchronized so that trucks are running as close to capacity as is possible to speed up delivery and increase efficiency in fuel use.
- Make sure your items are properly protected and secured during transportation to decrease the chance of being damaged during transport.
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Also Read: Wood Pallets Help Keep the World Moving
