Big global players such as Nike and Kellogg’s faced supply chain disruptions during the onset of the COVID-19 pandemic last 2020. With the world coming to a halt, the production and distribution of goods and supplies also slowed down, resulting in lower profit margins.
This event unwrapped the importance of supply chain management. Never having occurred before, several companies came unprepared and faced a multitude of supply chain issues restricting them from serving their customers on par with their standards.
The Remote Group took these challenges to add value and bring transformational growth strategies to the supply chain industry.
In effect, organizations learned how to embrace risk management planning application to their supply chain to ensure seamless end-to-end production and distribution.
Here are three nitty-gritty details companies missed that resulted in these shortcomings.
Profit leaks caused by supply chain mismanagement
Instead of generating revenue, the delays and constraints brought about by poor supply planning can result in profit loss, wasted opportunities, and may end up causing businesses more expenses. Without a proper understanding of consumer demands, companies might produce and distribute products with little to no market value.
Improperly maximized warehouses cause capacity issues. Problems such as redundancies, unorganized warehouse layouts, unsatisfactory damage control, and bad inventory practices all contribute to poor warehouse management. As the safe house of a business’s stocks, revenue loss can occur through damaged stocks, missing SKUs, and expired products.
Globalization also plays a big part in supply chain issues. Having to deal with several enterprises and suppliers in different geographies makes the process more complex. The necessities of permits, papers, and clearances may end up slowing down the supply chain process.
Supply chain managers from The Remote Group analyze forecasts to better understand consumer demands. These data-driven reports are used to predict consumer behavior which serves as a big help in supply planning. Supporting the end-to-end supply chain process, our remote supply chain managers carefully monitor trends and anticipate issues to proactively provide solutions.
Working remotely isn’t a hindrance to supply chain managers in supervising a warehouse. Using a Warehouse Management System (WMS), our managers can accomplish an array of tasks. This includes remote inventory management, labor and workforce management, access to real-time information, and more.
Our supply chain managers also specialize in taking care of international clearances. They help speed up the supply chain process by accomplishing everything needed for your customs clearance and regulatory compliance through their familiarization with rules, duties and obligations, and taxes.
With a Supply Chain Manager from The Remote Group, one of our biggest clients in the supply chain industry was able to grow its business by 7% in a span of 5 months.
Through a remote supply chain manager, their business saw increased efficiency in completing their supply planning using the effectiveness of trend forecasts to predict consumer demands.
By productively managing stocks and inventories, their company’s warehouse also saw maximized capacity and storage. Ensuring that FIFO is well implemented, stocks are better prioritized, leaving more storage for new products.
Due to the expertise of our managers on the customs requirements and regulations, the duration for processing international clearances also sped up from an average of 35 days to at least 21 days.