Did you know that nearly 80% of companies that have efficient supply chains enjoy better than average revenue growth?
Most business owners are familiar with the basics of supply chain management. Efficiently tracking, ordering, and moving inventory is critical. Especially for any company that deals with physical goods.
Without input from supply chain consulting, your business may experience supply chain disruption. Next, we’ll explore the benefits of hiring a supply chain and logistics consultant.
What Do Supply Chain Consultants Do?
Most professionals with experience in supply chain management could be qualified to consult. Supply chain risk management consultants typically have several years or longer experience. Past experience should come from work in supply chain management.
The professional advisors should have a bachelor’s degree in operations management. Or a degree in supply chain management or a related field. More established consultants often have an MBA.
Look for consultants who are familiar with your specific industry. They should also have a broad base of knowledge. Supply chain consultants should have experience working in many areas.
A supply chain risk management consultant analyzes a company’s supply chain logistics. The specialists look for inefficiencies. These could be problems with transportation or clean energy technology, among others.
Metrics are used to test the health of a supply chain. Supply chain consultants may even temporarily run specific areas of a company. Consultants perform this step to measure workplace efficiency.
Common supply chain metrics include:
- Cash-to-Cash time cycle
- Perfect order ratio
- Freight bill accuracy
- Inventory turnover
- Gross margin return on investment
Once the measurements and research are completed, supply chain consultants offer recommendations to optimize various parts of the company’s supply chain.
Benefits of Hiring a Supply Chain Consultant
Does your company struggle to keep up with demands? Many common business problems are related to poor supply chain management.
Once your consultant has offered solutions, your business can benefit from:
- Shipping optimization (and reduced shipping costs)
- Reduced overhead costs
- Improved risk mitigation
- Boosted cash flow
- On-time deliveries
- Improved interdepartmental communication
- Reduced out-of-stock statuses
- Faster complaint resolutions
Your suppliers will also benefit from improved supply chain efficiency. Imagine, no more last-minute calls for urgent orders and longer lead times when placing orders. That reduces stress on your suppliers.
Fragmented supply chain issues are often a symptom of broader problems. One common roadblock to optimal supply chain efficiency is a lack of clear communication.
Or collaboration between departments may be the problem. Solve those issues, and departments may see improvements in productivity and efficiency.
Enjoy the Benefits of Supply Chain Consulting
Supply chain consulting can do far more than improve inventory flow. Customer satisfaction, complaint resolution, and even interdepartmental collaboration can all be improved with the help of an experienced supply chain consultant.
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