How To Redefine Your Supply Chain Strategy in 2022
Managing supply chain is becoming more challenging as the world changes. Anything that you can do to optimize your process will put you in the best position if you experience any unforeseen issues and we want to help. A big part of the American Bolt Corporation advantage involves supply chain strategy and optimization and we’re able to do this by partnering with the best suppliers to provide value to customers. Below are supply chain tips from the experts at American Bolt to get you started on the right path in 2022.
Make sure that each component of the supply chain is optimized
In a functional supply chain, all the people, processes, and technologies required to achieve success must work together. Evaluate each component of your supply chain and identify ways to improve how your system runs. One way you can optimize your supply chain is by collaborating with suppliers to stay in the know about inventory, order fulfillment and availability of product at the point of purchase. American Bolt places an emphasis on data tracking to improve efficiency so we can bring down the total cost of ownership, as well as the On Time Delivery (OTD) of all incoming product. Managing processes and storage locations to achieve the highest efficiency and accuracy is how American Bolt has stayed in business for 60 years and counting.
Implement measures to improve supply chain efficiency
Improving supply chain efficiency may be challenging and costly but the benefits make it more than worth it. Consider automating supply chain processes like shipping and logistics to reduce human error and research supply chain software options to ensure that you have the right technology to work efficiently. American Bolt upgraded its ERP system in 2009 to improved business operations, an investment that is proving worthwhile, and our IT department developed and implemented an internal software program to manage production smoothly. You can also implement a Vendor Managed Inventory program, a supply chain agreement where the manufacturer or supplier takes control of the inventory management decisions for the seller or retailer, to help streamline things. Partnering with customers to optimize their processes through Vendor Managed Inventory programs is just another way that we stay ahead of the curve when it comes to supply chain.
Place buffers along the supply chain
Preparing for delays and shortages in the supply chain makes sure that current and future demands are being met. There are several ways that you can buffer your supply chain, including but not limited to having safety stocks of inventory, not using 100 percent of total capacity, working with an account rep on critical items, blanket/release orders to secure inventory up to 12 months, and allowing extra time for actions to be completed. Assuming something can go wrong in your supply chain ensures that you’re always prepared for surprises.
Diversify your source network
Cultivating relationships with different suppliers helps improve the reliability of your supply chain. When you keep up relationships with a network of suppliers, it makes it easier to satisfy customer demand if one supplier experiences inventory shortages. The secret to American Bolt’s growth is our commitment to working with suppliers to keep products in stock at our warehouse so that customers have access to the parts that they need when they need them.
American Bolt places an emphasis on data tracking to improve efficiency and accuracy so we can bring down the total cost of ownership. Managing processes, improving storage locations, and focusing on key performance metrics such as On-Time-Delivery (OTD) of all incoming product is an important piece of how American Bolt has stayed in business for 60 years and counting.