5 Issues Your Supply Chain and Material Planning Might Be Missing

Production1AWhen done well, supply chain planning and material handling are the bread and butter of your business. Planning and implementation might not be the most emotionally satisfying part of your business, but it is essential for financial health, and financial health is fun. When done well, your supplies and materials flow in a predictable, ordered fashion from your suppliers through your businesses processes and out to your customers. When not done well, inventory is inadequate, customer’s orders are late (or wrong), planning processes become spur-of-the-moment decisions, new customers are hard to find, and financial reporting becomes a nightmare. It is essential that your current ERP software and planning systems meet your business’s needs in these 5 areas.

  1. Inventory Management – The biggest aspect of a poor planning process is inventory loss. Loss does not just mean inventory being damaged from poor processes. Inventory loss includes inventory not being in the right warehouse at the right time. If you have a guaranteed delivery time and an order come in, but inventory has to be shipped from one warehouse to another, best case scenario, you lose one order. Worst case scenario is you lose a customer. Inventory management must be planned through the entire supply chain, including multiple warehouses and manage your incoming inventory and outgoing sales.
  2. Customer Service – With poor supply chain planning, your customers get hit with the worst consequences. Orders get delayed, or lost. A good ERP system will ensure that orders are tracked from the moment they are entered into your system until the moment they are no longer your property (depending on FOB or FOD). Your system will track these automatically, preventing data loss due to employee negligence or transfer between programs.
  3. Emergency Decisions – Every business owner knows the feeling of every decision being an emergency. This is not fun. With the right implementation and integration, your supply chain and material planning will be done effortlessly and automatically most of the time through planned events in the software (Purchase if…), through automatic data management (Customer information goes directly from sales rep to customer service to shipping) and more.
  4. New Customers – Proper planning produces happy customers. Happy customers give you excellent reviews. This is one of the easiest ways to find new customers, and an ERP solution for your supply chain handling will also give you tools to manage customer leads.
  5. Financial Reporting – The nightmares of business owners involve taxes and investors. With proper supply chain planning, the reports that your business needs to survive will be accessible in real time. When materials are lost or inadequate, customers are not reached, and the supply chain is disrupted, inevitably, your financial statements will reflect it. For proper financial reporting, you must have a full scale planning system which reduces data loss, and gives you freedom to focus on managing your business systems, not putting out fires.

Long Business Systems, Inc. specializes in business software and planning solutions, contact us to see if your planning systems can be improved.

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