The supply chain is efficient when the processes are optimized to minimize logistics costs and maximize profits.

To measure supply chain efficiency, logistics metrics that relate to inventory, turnover rate, order fulfilment, and shipping should be tracked. Tracking these metrics will help to find ways to improve the supply chain.

Below are some steps to take towards an improvement in the supply chain efficiency:

Expand visibility

Expanding the visibility of your supply chain is the first step in improving its efficiency, by putting inventory management strategies in place to track the progression of inventory levels from stage to stage. Modern inventory management software can be used here to increase visibility and track inventory in real-time.

Supply chain automation

Automation of the supply chain processes helps to increase performance and reduce human- errors, thereby saving time and money.

While human effort will still be necessary for some tasks, automation helps to improve productivity with time-consuming tasks.

Proper communication with suppliers

A good rapport with suppliers is important to achieve adequate communication. This helps to aid the reliability of the suppliers. It is important to be selective and avoid inconsistent suppliers.

With good communication with the suppliers, you can be on the same page with them, plan better, and avoid any shortages.

Software implementation

It is necessary to implement the right software that will enable work to be carried out efficiently. An example is using a warehouse management system that connects with the inventory management software to help with real-time inventory tracking, data reporting, analytics, etc.

Go green

Establishing green initiatives to reduce the carbon footprint of the supply chain is a great business value that customers are beginning to look out for.

It is important to strive for initiatives that are good for the environment, such as eco-friendly packaging that utilizes biodegradable materials and minimizes waste by cutting back on unnecessary filler materials.

Staff training

It is important to create plans for employee training because the supply chain is only as efficient as the people who manage it. Employees should be trained on standard operating procedures, such that they gradually become experts in the management of their assigned roles.