Supply chain management (SCM) requires an efficient system, involving coordination of processes, activities, and resources needed to move a product from supplier to customer. It is imperative to maintain best practices in SCM as it revolves around strategies that streamline operations, reduce costs, enhance customer satisfaction, and foster sustainable growth.
-Dr. Shehara Rizly
In today’s competitive world, supply chains must be agile, resilient, and transparent as businesses face growing complexity, and technological disruption. Adoption of best practices ensures that businesses can respond to changing market conditions, optimise their resources, and reduce risk.
Some key aspects require attention in supply chain management, which include demand forecasting and planning–the accurate demand forecasting helps the businesses to align with production, inventory, and distribution minimising wastage and stockouts.
The second aspect is of supplier relationship management—it is important to maintain strong partnerships with suppliers to ensure timely supply of quality materials at optimal costs, fostering collaboration and long-term value creation. The third aspect is on the lines of inventory optimisation—there should be efficient inventory management, through techniques such as just-in-time and safety stock, which minimises carrying costs and ensures product availability without overstocking.
A key component in today’s modern world is the integration of technology where leveraging technologies such as AI, blockchain, and IoT enables real-time data sharing, automation, and visibility across the supply chain. Finally, sustainability and ethics are an important focus as firms are increasingly focused on sustainable sourcing, reducing carbon footprint, and adhering to ethical standards, essential for brand reputation and regulatory compliance. Some of the leaders in the industry share their detailed insights with CARGOTALK.
Supplier collaboration essential for streamlining operations
Noman Ali, Founder & CEO, Inv-X Technologies Limited
In today’s fast-paced business landscape, optimising supply chain operations is vital for competitiveness. Key strategies include route optimisation and use of advanced warehouse management systems. Supplier collaboration and employing real-time data analytics are instrumental in streamlining operations and boosting productivity. To mitigate risks, companies should adopt a proactive approach by diversifying suppliers and using digital platforms to enhance visibility.
Building relations with suppliers, conducting quality control, and monitoring geopolitical and environmental factors are steps to stay ahead of disruptions. Handling them requires agility, achieved through real-time data monitoring, flexible procurement strategies, and contingency plans. AI, ML, and the Internet of Things are changing supply chains, demand forecasting, and operational visibility.”
Sustainability is no longer a choice, it is business imperative
Nissrine ELQOBAI, Co-founder & CEO, ENY-Consulting
It is difficult to have the best “standards” for the economy is evolving so rapidly that the best practices are fast outdated. Methodologies and analytics are crucial. The same way, we have appraisals with HR and our managers at the end of the year, we must do the supply chain “appraisal”. The first strategy is to do a self “Gemba Walk” or with your team and look at the gaps. Then measure the gaps you found and what are its impacts.
Then plan a few actions to see the results. Identify what are the elements of potential risks in your organisations. Then adopt them in your budget and consider the same in your daily operations. A forecast prediction can go wrong, but it is better to have a forecast than to remain clueless. Sustainability is not a choice anymore; It has become a way of life. Start with small ‘bites’ that your P&L can take and build your plan for three years.
Strategies to monitor for singling out potential disturbances
Aaron Smith, Director, aci logistics
Strategies for improving supply chain efficiency include adopting AI and IoT, optimising inventory management, enhancing data visibility, and analysing and refining processes to increase responsiveness. Best practices for mitigating supply chain risks include diversifying suppliers, maintaining robust contingency plans, conducting regular risk assessments, investing in real-time monitoring systems, and fostering transparent communication across the supply chain to redress potential disruptions.
Handling supply chain disruptions involves implementing proactive risk management, using real-time monitoring for early detection, establishing contingency plans, and collaborating with suppliers. Best practices for sustainability in the supply chain include sourcing responsibly, optimising resource use, reducing waste through circular practices, leveraging eco-friendly technologies, and collaborating with suppliers to adhere to environmental standards.”
Redressing disruptions by using real-time data for decision-making
A.S. Farhan, Assistant General Manager Freight & Logistics, Al Rais Cargo Agencies
Automating processes, optimising inventory management, and enhancing demand forecasting are vital for improving supply chain efficiency. Effective risk management involves supplier diversification, utilising data analytics for risk identification, and maintaining communication with partners. We address disruptions by having contingency plans, maintaining buffer stock, and using real-time data for quick decision-making.
Sustainable practices include minimising waste, optimising transportation routes, and adopting eco-friendly packaging. AI and ML help in predictive analytics, demand forecasting, and automation across the supply chain. EVs and drones can be an alternative for last-mile delivery in remote areas. They are not yet ready to replace conventional methods on a large-scale due to payload capacity’s limitations. The EVs need to focus on educating stakeholders through seminars, pilot programmes, and regulatory discussions.
Analysing data for identifying, responding to disruptions
Abid Hamza, GM, Business Development, Fast Logistics Cargo FZCO
Implementing automation and digital platforms streamline operations, ensuring faster, and accurate order fulfilment. To mitigate risks, create contingency plans, and ensure real-time visibility across the supply chain. Strengthening supplier ties and conducting regular risk assessments can prevent potential disruptions and safeguard operations. Handling disruptions requires flexibility and resilience, achieved through contingency planning, maintaining buffer stock, and utilising alternative transportation modes.
Real-time data monitoring helps in quickly identifying and responding to disruptions, minimising downtime. Best practices for sustainability include reducing carbon emissions by optimising routes and utilising EVs. Adopting circular economy principles, such as recycling materials and minimising waste, and encouraging suppliers to adopt green practices also contribute to a sustainable supply chain. AI and ML enable predictive analytics for demand forecasting, reducing inefficiencies.”
Sustainability in logistics sector reduces costs across supply chain
Sylvain Kluba, IMEA CFO, CEVA Logistics
Having multiple plans and diversifying your supply chain is important. Supply chains are constantly put to the test, and they are affected by geopolitical developments and weather among others. Let us take the example of Bangladesh, which erupted in riots recently. The curfew imposed in the country, which is a large exporter of textiles, has impacted every segment of the economy.
Widespread factory closures and delayed production speeded up shift from sea to air freight, which led to shortage of space and hime in rates. At CEVA, we anticipate disruptions and hence are fully prepared. One of the most significant factors of sustainability in logistics is it is a conscious effort across the supply chain.
We use innovation to drive decarbonisation through warehouses and low carbon solutions. Activities supporting these initiatives include reducing energy consumption through solar panels, LED lighting, updating the fleet to electric and low carbon vehicles, and offering low carbon fuel options.”
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