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Frequently asked questions
Supply chain management is the process by which an organisation delivers the right products to customers at the right time and place while keeping costs down and efficiency as high as possible. Supply chain management requires the coordination of a raft of activities, from sourcing raw materials to delivering finished goods to end consumers.
Effective supply chain management can increase revenue, improve operational efficiency, and enhance customer satisfaction. It helps businesses reduce costs, minimise delays, respond quickly to market changes, and establish a competitive advantage in the global marketplace.
It can increase revenue, improve operational efficiency, and enhance customer satisfaction. Supply chain efficiency allows businesses to reduce costs, minimise delays, react quickly to market changes, and establish a competitive advantage.
Modern supply chains typically have five core components: planning, sourcing, manufacturing/production, distribution/logistics, and returns management. Each element ensures the smooth flow of materials, goods and information throughout the supply chain.
Small businesses can implement effective supply chain management by focusing on balanced sourcing strategies, leveraging affordable technology solutions, and building strong relationships with suppliers operating at a similar scale. These approaches can help small businesses optimise their supply chains despite limited resources.
Key performance indicators for supply chain management include inventory turnover, perfect order rates, cash-to-cash cycle time, and supply chain visibility metrics. These measurements help businesses identify inefficiencies, track improvements, and demonstrate value to stakeholders.
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