Supply chain logistics are key to any flourishing business. That said, it will come as no surprise that the last few years’ have seen repeated supply chain disruptions affecting most businesses around the globe.
For UK manufacturers, these supply chain issues have been particularly acute.
First the mishandling of Brexit, then the COVID-19 pandemic and war in Ukraine have all affected manufacturers to different degrees.
But rather than accepting the status quo, how can UK businesses begin to prosper and how can these supply chain logistics problems be navigated?
We believe that investment in new technologies is the place to start, and here is why.
Diversify your supply chains with ERP
Those manufacturers that rely on a select group of suppliers risk being exposed with those suppliers are unable to carry out their services due to external factors.
A more efficient business will have diverse supply chains so they can move nimbly to other suppliers when problems arise.
Unfortunately, not all business have the software capabilities to cope with the demands of using numerous suppliers and so have to stick to what they know because their processes struggle to keep up with additional pressures.
Thankfully, with a quality ERP system, your business can accurately and efficiently deal with multiple suppliers at once and reduce the risk of major disruption when one supplier goes down.
Optimize stock levels
Any manufacturer would have an excess of stock to deal with all eventualities if it were only possible.
Unfortunately, excess stock ties up capital and requires costly extra storage space. For food manufacturers and other, excess stock can easily devalue if left on the shelf for long enough also.
If you decide to go down the route of minimising stock levels, you need to anticipate demand accurately or risk frustrating customers with longer wait times while the stock you need is order in.
The obvious solution to this supply chain logistics problem is a solid ERP system.
With ERP, you can put data analytics to use, anticipating demand and automating the order of essential items when required.
By investing in software, you can take the guesswork out of stock levels.
Supply chain logistics and agility
Manufacturers are beginning to expect the unexpected after the effects of Brexit and the pandemic.
One of the key ways to navigate future supply chain logistics problems will be to boost agility within your business.
The ability to pivot in order to take advantage of new opportunities is more important than ever.
An important factor here is in planning ahead. While your business experiences a brief stable period, make sure you’re refining your suppliers, collecting good data and building contingency plans.
This is because it is no longer enough to deal with problems as they arise. The businesses that flourish in the future will be the ones who get their ducks in a row now, rather than later.
Did you find this interesting? Our expert consultants can talk you through the benefits of a new ERP system and show you what this looks like in practice. Get in touch here for a no obligation chat.