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How to Manage Your Supply Chain and Cargo Distribution Network

How To Manage Your Supply Chain And Cargo Distribution Network
  • 15th July 2020

When people talk about supply chain and cargo distribution network management, what they refer to is the procedures, technology, and systems that connect the customer to the supplier.

At Siggol Logistics we understand that an efficient and performing supply chain and cargo distribution network helps a business save money. This is because of faster client deliveries, shorter factory processing times, and better inventory management. Good management of supply chain and cargo distribution network also prevents decay and spoilage of goods.

Just like Siggol Logistics, here are key elements that you need to pays attention to when managing supply chain and cargo distribution network:

1. Improve your distribution network.

A company’s distribution network is the operational hinge you should build around. Distribution affects everything from delivery tracking to sales strategy. The main goal is to improve the distribution network, which can be done through a holistic approach or a cluster view. In a holistic approach, you review essential parts in your distribution network and try to figure out how the parts work in sync.

For example, look at the purchasing software and see how it works with the delivery system. Does it communicate well with production foreman or warehouse managers? If it’s not as efficient as you’d like it to be, you can identify where changes need to be made. Unlike a holistic approach, a cluster view group charts, graphs, and other details together to help you keep an eye on the process for a specific function in the company.

2. Devise a distribution strategy.

A distribution strategy is integral to an effective framework for supplier management. It allows a business to have a better idea of what it takes to shorten delivery times, reduce goods decay, and improve customer service. Supplier management and the broader field of supplier chain management help a company plant the seeds of long-term financial stability. At Siggol Logistics we understand that formulating an effective distribution blueprint helps a business achieve profitable growth, especially when corporate managers think strategically about revenue, cost, and asset utilization.

When formulating your distribution strategy, keep an eye on things like warehouses, cross-docks, production facilities, and customers, along with the location, number, and network missions of suppliers. Set an overall goal for your distribution and implement tactics that are in sync with your overall strategy.

3. Monitor cash flows.

Cash flow monitoring is a fundamental tool that various organizations like Siggol Logistics use to improve supplier management. It is important to track payment terms and conditions with several groups within the supply chain, forging an efficient plan to understand the technology used for monetary transfers.

Said simply, companies must clearly understand how to pay suppliers and logistics companies , how often to pay them, payment tools, and any expenses that get passed to customers. Payment technology, in the context of supplier management, refers to equipment used to pay vendor bills, like point-of-sale machinery, the electronic pad the warehouse staff signs when receiving goods and shipment tracking software.

4. Establish information conduits.

Information conduits are channels businesses use to share important data, like tracking information, with key partners. To establish proper information conduits, make sure data is distributed promptly and properly to pertinent recipients. For example, if your factory foreman needs more materials, this information should be conveyed to purchasing managers as well as store room supervisors and delivery personnel.

5. Track your inventory.

By utilizing tracking software or internal spreadsheets you design, you can monitor the whereabouts of your inventory. This will help you know how much of your product you have, how much you need, as well as if anything happens to it (damage, decay, theft, etc.). It is important your staff knows how this system works so they can effectively log information, as well as participate in routine inventory assessments. Other things to consider are the location and quantity of inventory, including finished goods, work-in-progress items, and raw materials.

Supplier management plays an integral role in your company’s overall commercial strategy. You can improve supply chain performance by keeping tabs on what business partners do, ensuring everyone collaborates effectively, and tracking your company’s assets.

For this and much more, kindly get in touch with us at; sales@siggol.com or call us; +254 700 036200 | +254 719 280 351

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