Within operations and supply chain management, understanding the strategic goals and objectives are key when attempting to improve overall productivity and efficiency. This will also enhance your overall bottom line and bring massive financial improvement to your manufacturing operation.
Supply chain management pertains to the collaborative approach that enables goods or services to arrive on time to your consumers, whether it be another operation or individual consumers. Several goals that are within supply chain management include aiding you in gaining a competitive advantage within your marketplace, improving collaborative efficiency, optimizing logistics, and improving quality among products. Overall, this will benefit your customers and could create brand loyalty and increased market share within your industry. Therefore, within this blog we are going to discuss the strategic goals and objectives of supply chain management and how they can benefit your overall operation and production facility.
Top Three Strategic Goals and Objectives of Supply Chain Management
The top three strategic goals and objectives of supply chain management include the following:
- Ensuring Efficiency Within Your Operation - For obvious reasons, efficiency is one of the most important aspects of supply chain management. Effectively managing inventory, transportation, and logistics can be a complex process, but overall understanding how to do it can greatly benefit your operation. It can be incredibly costly if your company does not have an adequate ERP, MRP, or APS system. When manufacturers, wholesalers, and retailers collaborate on a supply chain system, it is far much easier to maximize efficiency for your operation.
- Optimizing Transportation and Logistics - Another key component within supply chain management is optimizing transportation and logistics. Within an independent business environment, each company is responsible for its role in ordering, shipping, and transportation of goods. In this business model, the cost are rather high due to poor timing and collaboration. With supply chain management, your process should “flow” and have suppliers, manufacturers, wholesalers, and retailers all on the same page at all times. With SCM, you can plan optimized transportation and logistics activities with any vendors or buyers that you work with. Orders are automatically put into a system and alert other facilities that are needed to fulfill this order.
- Focusing on Quality Improvement - It is important to keep in mind that providing consumers with the absolute best value is a goal that is shared by you and your supply chain partners. As you are more connected with your partners, product and service quality should be enhanced dramatically. This can also pertain to Quality Function Development (QFD) and allows customers to tell you what is most valuable within your product or service - which will save you money down the road. Within a collaborative supply chain, you are creating a system where customer feedback is enabled to your company and others within your supply chain. These inefficiencies and drawbacks that are included in the feedback enable you to address any issues that you should focus on.
Incorporating these strategic goals/objectives into your supply chain process is key in optimizing efficiency and overall effectiveness. It will dramatically reduce cost, reduce inventory/waste, and bring other financial benefits to your operation. A software that is able to conduct these processes is PlanetTogether’s Advanced Planning and Scheduling Software (APS). Advanced Planning and Scheduling (APS) software is a platform that enables you to eliminate bottlenecks, have thorough visibility, and locate areas that are in need of efficiency enhancement. Advanced Planning and Scheduling (APS) software is being integrated into manufacturing operations around the globe and manufacturers are reaping the benefits of utilizing this software.
Advanced Planning and Scheduling Software
Advanced Planning and Scheduling (APS) software has become a must for modern-day manufacturing operations due to customer demand for increased product mix and fast delivery combined with downward cost pressures. APS can be quickly integrated with a ERP/MRP software to fill gaps where these system lack planning and scheduling flexibility and accuracy. Advanced Planning and Scheduling (APS) helps planners save time while providing greater agility in updating ever-changing priorities, production schedules, and inventory plans.
- Create optimized schedules balancing production efficiency and delivery performance
- Maximize output on bottleneck resources to increase revenue
- Synchronize supply with demand to reduce inventories
- Provide company-wide visibility to capacity
- Enable scenario data-driven decision making
Implementation of Advanced Planning and Scheduling (APS) software will take your manufacturing operations to the next level of production efficiency, taking advantage of the operational data you already have in your ERP.
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Topics: strategic goals