Your supply chain should assist your firm in delivering the products that your consumers want, when they want them, and in doing so in the most cost-effective way possible. And a company will need a certified supply chain service in Malaysia.
This is the foundation for deciding how to design your supply chain. Consider your supply chain and the KPIs that go with it:
– Order accuracy
– On-time delivery
– Cost savings
If your company’s supply chain needs to be designed or redesigned, focus on those three criteria.
Types of supply chain structure
But, when it comes to the type of supply chain your firm will require, what are your options? You might think of these three supply chain categories while designing or redesigning your company’s supply chain:
– High inventory volume, high inventory turn (because perishable goods, such as fresh or frozen foods, expire or degrade quickly)
– High inventory volume, low inventory turn (because your company’s suppliers have extensive lead periods)
– Inventory turnover is high despite the low inventory volume (approaching Just-In-Time supply chain)
Design considerations
The geography of where things move, the logistics of lead time and expenses, and the taxes associated with transferring the products are all factors to consider when developing or restructuring your company’s supply chain.
The fact that your supply chain will be measured by: is related to these considerations.
– The flow of goods
– The cost of commodities movement
– The amount of time it takes for the things to arrive.
Where are your customers?
This may appear to be a simple question to pose—and it is. Do you offer international shipping to your customers? Do you deliver to them on a regional basis? Do they come to you for their orders to be picked up?
If it takes your clients six weeks to receive their purchase after you’ve loaded it onto a ship and sailed it across an ocean, you’ll want to build that last link in your supply chain around the complexity of international freight and customs.
Customer delivery in your supply chain might be an extension of your inventory control and management function if your consumers walk up to a pick-up window or counter.
If you already have consumers who want a quick order-to-delivery lead time, you’ll probably need a high inventory, low-turn supply chain—which means you’ll spend more on inventory but reap the rewards of higher customer satisfaction.
If you supply perishable products to high-demand clients, you’ll want to retain a large inventory to ensure that you can deliver to them quickly—before the inventory runs out.
Where are your suppliers?
Long supplier lead times are likely if your suppliers are halfway around the world. (While high-priced air freight can significantly shorten lead times, the cost offset is frequently not worth it in the long run.)
Alternatively, if your suppliers have long manufacturing cycle times, your lead times may be long as well.
High supplier lead times can result in high inventory quantities and low inventory rotations in supply chains. Some businesses, on the other hand, are able to use their market position to reduce inventory levels and accelerate inventory turns. Apple, for example, employs a combination of strategic regional distribution facilities and consignment inventory to cut inventory costs in its accessory supply chain (phone cases, laptop sleeves, and so on).
