Analyzing Your Company's Supply Chain

If you attended our webinar, one of the things you probably took from it was the importance of continually analyzing your company's supply chain. You cannot change what you cannot see, so you cannot make any improvements on your company's supply chain unless you really know what you are dealing with. So how do you figure out what you are dealing with?

Here are some tips on what to look for when analyzing your company's supply chain:

1. Look for problems
Obviously, if something is a big enough problem, you may not necessarily have to look for it. However, smaller problems that may fall through the cracks may be costing your company money. Go through your company's departments and ask if there are any production problems, and ask if things could be done more efficiently.

2. Look at your company's processes
Could any processes be done more efficiently with a bit of tweaking? See what it would take to achieve more efficient production. Short gains can lead to big rewards.

3. Look at your company's relationship with distributors and suppliers
Do you have a good relationship with your company's distributors and suppliers? Are your orders on time and of the highest possible quality? If not, you may want to reevaluate your company's suppliers.

4. Develop contingency plans
Does your company have contingency plans for natural disasters, international issues, logistical accidents, and changes in supply and demand? If not, think about developing plans.

5. What is your company's supply chain doing well?
You can learn from what your company is doing well in its supply chain. Analyze your company to determine what its competitive advantages are, and then see if you can use that to improve the remainder of the supply chain.