The benefits of supply chain management
Effective sustainable supply chain management can have countless benefits for the success of a business. Regardless of your industry, all businesses need to have a supply chain that works, to demonstrate competence, efficiency and reliability in operations.
To ensure your business can maintain growth and expand in a highly competitive environment, you need to consider how your supply chain is managed. Good sustainable supply chain management is about mitigating risks to help boost your business prospects, both financially and reputationally both in the short and long term.
But what do you need to consider and what are the potential benefits for your business? Take a read of our blog to find out all the answers and benefits of supply chain management.
Why good supply chain management is a must
Regardless of the industry, your business needs to be profitable in order to maintain success and stay ahead of the competition. It’s a primary objective that needs to be fulfilled, otherwise, the running of a business can become unsustainable if it continues to not meet financial targets. To satisfy this criteria, there are several things you must optimise accordingly to help meet wider goals focused on profits and growth.
Equally, we know finding time to effectively manage your supply chain models can be time-consuming and may require lots of resources. Having a service that takes care of your supply chain management helps ease the burden. You can then devote more time to managing your workload to focus on growing your business, without worrying if your supply chain remains compliant.
Good supply chain management is about having strong procedures in place to maximise your business profits and strengthen customer satisfaction. It builds trust and subsequently helps maintain a healthy reputation for your business and below we’ll explore the reasons why.
What are the main benefits and why?
Any measures that a business can take to reduce costs is a no-brainer, and that’s one of the main benefits of effective supply chain management. For example, in the construction industry, there are many parts of the chain that need to be coordinated and work well in conjunction with one another.
Having suppliers and contractors you can rely on is key, any disruption within the chain can have a profound impact on the success of your operations.
By having your supply chain managed, you’ll benefit from reliable contractors who are assessed to ensure they meet compliance requirements. SSIP is the Health & Safety standard for contractors and suppliers in the UK, and therefore, the contractors you partner with should meet this standard.
Having contractors and suppliers that are accredited means you’ll have no concerns over your supply chain process. Accreditation means trustworthiness, so you can be safe in the knowledge that you’ll have access to the best companies you need to ensure your business runs efficiently.
If there’s an issue with material supplies or with contractors, a contingency plan isn’t always a swift solution. It can cost time and money to find a solution, but if there is an effective accreditation scheme in place, you no longer need to spend valuable time and resources figuring out how to fix them. If your supply chain model involves multiple partners, then there is a higher chance of issues. Supply chain management eradicates this and ensures only the best-accredited suppliers are enlisted to fulfil the required obligations.
Strong Health & Safety visibility
Visibility of your whole supply chain process is a must to keep tabs on Health a&Safety throughout the chain. Good management of this requires a thorough assessment of all contractors within your supply chain, ensuring they are compliant with Health & Safety obligations.
CDM regulations state that risks must be managed throughout a project, to safeguard all people involved in the construction project. Similarly, higher education institutions are duty bound to ensure any contractors they procure are compliant with Health & Safety requirements.
A managed, sustainable supply chain solution means less time arranging in-house Health & Safety assessments, and more time focusing on core business activities.
Staying ahead of the competition
A competitive advantage can bring many benefits, not least in financial revenues and the reputation of your business. With a managed supply chain, you’ll benefit from a higher standard of contractor for your projects. This means faster turnaround times for projects and reduced costs, so you can improve your service offerings and gain that all-important advantage over your competitors.
The value of a well-managed supply chain can transcend the customer service reputation of your business, which is a huge competitive advantage. If customers are receiving a great service, they’ll continue to use your services and this will only help raise the stock of your business.
What is sustainable supply chain management?
Whilst it’s important for your business to adopt green practices to help the environment, it can be at a significant cost and deter businesses from adopting new methods as a result. A sustainable approach to your supply chain doesn’t have to be costly and it can have tangible benefits to your business operations.
But what is meant by sustainable supply chain management? Generally speaking, this encompasses the whole production process, from how materials are sourced or produced, stored, and delivered. The environmental footprint is the main deciding factor when assessing how sustainable your business operations are.
Although some costs may be incurred in the short term, the long-term benefits are a crucial factor for a sustainable supply chain. Driving down costs, boosting productivity, reducing waste and conserving resources are all positive attributes of having a supply chain that is sustainable.
Customers and other businesses are also mindful of using businesses that don’t adhere to sustainable practices. By doing so, you’ll increase the chances of winning more business and seeing revenue grow.
Read more information on what supply chain management means for the construction industry.
Strengthen your supply chain with Smas Worksafe!
So, now you’re aware of the benefits supply chain management can have for your business, perhaps it’s time to think about partnering with Smas Worksafe. From the construction industry to the education and care sectors, we have vast experience in effectively managing the supply chain process for a range of clients.
Our supply chain management services are designed to help take the responsibility off your shoulders, and into the hands of our trusted experts. We offer a fully managed no-cost sustainable supply chain solution, providing your contractors with support and a consistent assessment process. Contact us today and let Smas help transform your supply chain models today.