The 7 Benefits of Supply Chain Intelligence For Your Business

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The costs of a poorly managed supply chain aren’t hard to imagine. You’ve got to pay for the space to hold your excess inventory, your vendors aren’t happy with the inconsistent orders, or you aren’t prepared with the right amount of product when the market demands it.

It’s essential to have a grasp on how to optimize your supply chain. If you don’t, you risk losing money and ruining relationships. This is why it’s so important to invest in supply chain intelligence.

As you’ll soon find out, the investment is well worth it.

The Importance of Supply Chain Intelligence

The supply chain is clearly important, but the wide-reaching effect that it has doesn’t come to mind clearly. Supply chain intelligence gives a systematic understanding of each level of your supply chain.

This means you know specific quantities and timeframes, and have the quantified data to refer to in the future. We’ve compiled a list of seven important benefits that supply chain intelligence gives.

1. Accurate Forecasting

When you’re able to see specifically how much product you use during certain periods, you’re able to have a pretty good grasp of what you should be expecting in the future. Accurate supply chain data will give you an extreme advantage in the market.

Some intelligence allows you to monitor any business changes or alterations at all points in your chain, which gives you the ability to prepare when issues arise. Any hiccup in the chain will trigger an alert that allows you to make adjustments when needed.

You’ll also be able to prepare for those times when your customers purchase the most and know how much you should expect to sell. All of this is streamlined when you have a close eye on your supply chain.

2. Faster Responses

Those hang-ups that we discussed in the previous section can cause serious delays at times. These delays can extend for as long as it takes for your vendors to fix the problem or for you to find someone else to replace that link in the chain.

This will establish you as a company that is reliable and trustworthy. The more faith that you can command, the more profitable your business will be.

3. Save Money in the Chain

Every link in the chain involves some kind of cost. Whether it’s the weight of the excess goods you ordered or the change in warehouse arrangement that you didn’t know about, small mistakes are going to add up in the long run.

Understanding as specifically as you can the details of the supply chain will help you eliminate costs you didn’t even know were there. Not to mention, the time that used to be tied up managing issues in the supply chain can now be used to do other productive things.

So not only are you saving money, you’re able to generate more with the time that is now free.

4. Make the Vendors Happy, Keep Relationships

As we’ve mentioned, each link in the chain costs money, involves a relationship, and needs to be reliable. If you are consistently on top of the data, you will not make nearly as many mistakes as you would if you just let things go casually.

You’ll develop a reputation as a reliable company that can be trusted, and this will make your friends. Reputation is huge, and if someone gives you a recommendation, you’d better thank the efficiency of your supply chain.

5. Have a Zero Waste Operation

Supply chain intelligence will also allow you to analyze the routes, locations, and delivery methods of all of your materials. This means that your route is going to be streamlined by incorporating the most efficient and convenient locations to stop.

That will save on fuel and man-hours, and the product will be at your door faster, freeing up time for you to make future plans.

6. Have the Ability to Plan Ahead Accurately

All of these things will culminate in a state of high-efficiency, one that is predictable and consistent. Freeing up all the spare time and money that you have floating around in your supply chain will allow you to make moves to expand the business.

Whether the time that you gain will allow you to spend time with your family, thereby improving your mood and everyone else’s, or you will toil away, making that perfect business plan, you’re going to have the option to do something new.

7. Be Able to Factor in Outside Forces

Some advanced supply chain technology is beginning to predict the effects that certain events might have on shipping demands or traffic hold-ups. Cultural influences are huge, and you want to be prepared for whatever comes your way.

It’s great because these services tailor their efforts to your business’ niche, your area, and your desires. The fact that these services exist also takes away a significant amount of risk. You have the ability to make better, more informed decisions about where your materials are going.

Whether your issue has been weather damages, poor relationships with shoddy suppliers, or issues that could impact your insurance and damages, supply chain intelligence will be able to give you a rough estimate as to how these things will affect you in the future.

Another factor that reduces risk is the ability to know when an issue arises, address it, and have a laundry list of alternative options to fall back on when you’re forced to make decisions. A lot of the damage comes in the time between the issue and reparations, which is why it’s essential to act quickly.

If you make the investment in supply chain intelligence, you will be able to react quickly, make vendors happy, streamline your chain, save time and man-hours, and gain the ability to look forward with your company.

Interested in Learning More?

You might be thinking, “how much is this going to cost?” Well, it’s likely not as much as you think. If you’re interested in learning more, feel free to reach out to us on our website.

Contact us and we’d be happy to answer any questions you may have about supply chain intelligence.

1 reply
  1. Jeanne Belle
    Jeanne Belle says:

    That was a great article! Supply chain intelligence have became one of the most inevitable feature of any supply chain management solution. Supply chain intelligence can improve process planning, it’s execution and
    efficiently assess supply chain performance, improves stakeholder collaboration, monitor costs and thus makes business more cost effective.

    Reply

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