Those wanting to work smart and make bigger sums in profits essentially need to think along the lines of lean supply chain, whether they are a new business or have been running for years. Creating a lean supply chain calls for the optimization of the supply chain processes and implementation of standard protocols and efficient technology.
In this article you will learn about the importance of a lean supply chain, its benefits and how to smoothly transition to a lean supply chain by collaborating with an expert third party logistics (3PL) fulfillment company.
What Is a ‘Lean’ Supply Chain?
An optimized supply chain in which there are no inefficient or unimportant processes, unnecessary costs, or wastage of resources is a Lean Supply Chain. A lean supply chain ensures minimum expenditure, maximum output and accurate order fulfillment.
Why Are Lean Supply Chains Important?
Being hit by the pandemic has woken the world to the realization of its systems not being agile enough and requiring optimization to cope with multifarious challenges. Businesses now accept the urgency and importance of pacing up their order fulfillment services, faster packing and shipping, reducing the cost of logistics, and gaining customer loyalty. Some of the key benefits of a lean supply chain include:
- Enhanced order fulfillment
- Optimized inventory processes
- Well-informed decisions
- Order accuracy
Best Practices for Lean Supply Chain Management
Having a leaner supply chain for eCommerce warehousing and logistics calls for serious action, such as opting for efficient end-to-end eCommerce solutions and implantation of revised and improved standard operating procedures (SOPs). A lean supply chain approach tends to cut down on redundant and unnecessary processes and lower overall costs while improving the entire supply chain operation. The following practices can optimize the supply chain and ensure enhanced eCommerce fulfillment and greater profits.
Analyze past sales data for forecasting demand
Making use of previous sales data and figures over the past, businesses can efficiently forecast demand and avoid hoarding unnecessarily high inventory volumes resulting in huge inventory-carrying costs and ending up with deadstock.
Leverage technology and automation
Make use of technology to organize inventory, monitor the performance of different SKUs and track its levels, using the digital warehouse approach. By utilizing automated operations, you will enjoy a higher accuracy in eCommerce fulfillment, at a much faster rate and experience much reduction in errors. Collaborating with a company like ShipBots that is an expert in the 3PL fulfillment process, you can enjoy a streamlined and leaner supply chain with ease.
Assess your suppliers and processes
Make certain that your current supplier or manufacturer is your best option, otherwise switch. Look for partnering options with a supplier who will provide the best quality in the least price. Moreover, make sure to evaluate their supply or manufacturing process as well and see if that needs to be optimized.
Digitize your warehousing process
The optimized operations of eCommerce warehousing and logistics go a long way in achieving a leaner supply chain. Therefore, it’s important to frequently conduct warehouse inspections and assure the implementation of best practices and implementation of updated SOPs. All of which can be easily monitored and managed by making use of a digital warehouse management system.
Collaborate with 3PL professionals
Transitioning to a lean supply chain means working on creating the best practices, switching to new or improved infrastructure, and ensuring a high-quality and standardized eCommerce fulfillment process. All of this can be made easily possible by collaborating with a 3rd party logistics (3PL) provider that has expertise in the 3PL fulfillment process, such as ShipBots. With its tech-enabled tools and automated approach, ShipBots can handle large volumes of business, seamlessly.
ShipBots’ Approach to Lean Supply Chain Management
At ShipBots, we aim to optimize the efficiency and cost of operations throughout the supply chain, making it more lean and just as profitable. We strive to help businesses to only incorporate essential input and achieve the maximum output.
Use of analytics and software for optimizing processes
At ShipBots, we believe that making data-driven decisions help in forecasting customer demand and only purchasing and organizing the right amount of inventory and stock. Making use of analytics and software results in better allocation of inventory across fulfillment centers and prevents a drop in sales performance and the consumption of dead stock.
Real-time inventory tracking and management
Automating the inventory management process makes it a whole lot easier to monitor the location, amount, and performance of different items. ShipBots allows you to keep tabs on your inventory across multiple channels, by using a holistic dashboard.
Distributed inventory across multiple 3PL fulfillment centers
ShipBots guides you in better allocating your inventory by splitting it geographically among different eCommerce fulfillment warehouses, depending on your customer base. This saves on travel expenses and results in faster order fulfillment.
Therefore, partnering up with ShipBots will help you achieve a lean supply chain with maximum dock-to-stock efficiency as well as eco-friendly shipping solutions, so you can request a quote and take your first step towards going more lean.
