You won’t find any successful business shrugging off the importance of their supply chain. A mid-market company that is caught between huge, well-resourced competitors and smaller, more agile brands, would do well to try and find ways to improve their supply chain process. This can be done in a number of ways, including implementing ERP (enterprise resource planning) software or finding appropriate procure to pay solutions that fit your company to stay competitive. Whichever route you take, the prioritization of your supply chain could be the missing ingredient to your brand’s success. A recent study by Deloitte, which surveyed more than 400 executives, found that 69 percent of supply chain leaders experienced an EBIT margin that’s “significantly above average” as opposed to only nine percent of organizations that are supply chain followers.

This article will highlight the do’s and don’ts of successful supply chain management that are sure to improve the viability of your company.

Do’s

Keep Close Relations with Distribution Channels

Effective communication with your suppliers keeps the entire supply chain process as smooth as possible. The supply chain is not a simple construct, and mistakes are going to happen, but an open line of communication will help you prepare for these challenges before they arise. Demonstrate you’re a good customer by paying bills on time, as well as being upfront if it’s going to be late. You want as many people on your side as possible to keep the pipeline flowing smoothly.

Improve Supply Chain Visibility

Supply chains are not exactly the easiest terrain to trudge through, so the last thing you want is to muddy it up with extraneous factors that’ll slow the pace down. The implementation of ERP software, can greatly increase the visibility and flow of your procurement process. Procure to pay solutions tools, such as Kenandy’s, help businesses cut down on administrative tasks with more streamlined processes, make purchasing decisions with the aid of real-time visibility, as well as resolve any issues that arise quickly. These comprehensive tools provide clear and concise supply and demand information while allowing you to stay on the lookout for indicators, and ultimately solve problems before they even occur.

Keep Evolving the Plan

Whatever your plan is for optimizing the supply chain and minimizing risk, it shouldn’t be static. Obsession with risk management isn’t healthy or good for your company, but it is a good idea to be actively involved in the strategic implementation of appropriate procure to pay solutions that mold around your company.

Don’ts

Not Making One Person Accountable for Risk Management

There’s an old saying that goes, “When everyone is held accountable, no one’s responsible.” This is certainly true when it comes to the many moving pieces of your supply chain. If you don’t assign a risk management manager to be your watch dog, the entire pipeline could fall apart irreparably. That person needs to be properly equipped with adequate tools, and well versed at every level of the supply chain from procurement to payment.

Measuring Everything by Spend and Not by Impact

It may seem like a typical business move to manage value based on total cost and expenditures. Although spend in many other aspects of business is a very important factor, there happens to be a variable that is more valuable and affects your total spend in the long run: impact. To use another adage, “a chain is only as strong as its weakest link,” which is to say that if you have an unreliable supplier, who will sometimes be late on deliverables yet is cheaper, you’re putting your entire supply chain at risk. A better approach would be to shell out the extra money in order to keep your pipeline running as smooth and efficient as possible.

Keep the above do’s and don’ts in mind when analyzing the state of your company’s supply chain system.