Месяц: Ноябрь 2021

The three levels of supply chain management are strategic, tactical, and operational. These cover all the decisions that are made about the products or services that a company may offer. Every business needs to consider their supply chain operations on these three levels, as it will determine the quality delivered, the timeliness of the delivery, and the cost.

Strategic

Everything starts at the top because that’s where the vision & mission comes from. The choices made at the strategic level lay the groundwork for the rest of the supply chain. Senior management will make decisions about the products/services offered, product improvement or introduction, and the major reason for the existence of the company. It’s important to understand the current market and customers at this first level.

There may also be a need to acquire another company, or sell an existing company. From there, decisions will be made about manufacturing, choosing suppliers, etc. It’s important that these decisions agree with the overall vision of the company.

Tactical

Moving on from the big-picture choices, at the tactical level we see cost, efficiency, and quality come into play. What will be the manufacturing processes of the company? What are the customers demanding and how can we deliver? Do we need to outsource warehousing near ports like Chicago?

This level includes warehousing, transportation, distribution centers, inventory management, and other important logistical decisions. This is where companies like Amazon changed the game because their logistics & reverse logistics processes are seamless, and orders are fulfilled with extreme efficiency.

Operational

This level involves the day-to-day decisions. There is a need to plan for resources & capacity to ensure the business has the inventory necessary to carry on. This level also deals with the minutia of tending to damaged or lost goods, dealing with natural disasters or pandemics, and quality control. The decisions made at this level should be done in accordance with the strategic and tactical decisions that have been made.

Chicago businesses are feeling the effects of a pandemic that is still lingering. In construction, companies are limiting sales because of labor shortages and a lack of materials. In the food industry, Patrick Berger, the owner of the restaurant Kaiser Tiger in Chicago says, “people don’t understand why there is one server for fifteen tables.” In the retail industry, Gary Glenn, the co-owner of StichMine says, “We started with maybe one out of four or five orders where we’d have a back order, now, it’s every order.”

Visibility

The businesses of Chicago never could have seen these supply chain issues coming, but they could have been prepared. Bottlenecks at ports and the Suez Canal ship getting stuck is only part of the reason. Another major culprit of the supply chain issues is the lack of proper end-to-end visibility. If warehousing & transportation data isn’t readily available and clear, quick changes in response to backlogs won’t be possible. Visibility is the number one reason many suppliers and manufacturers were hit hard during the pandemic.

Storage

David Bouley, the President of OMEC says “We can be more prepared. We can require more reactive capacity in the network. We can seek out strategic partners poised to pivot and provide essential raw materials, parts, and equipment.” Having a strategic warehousing partner in the Chicagoland area can be an extreme help. Some Chicago businesses were proactive before the supply chain issues hit and they ordered way more product than they needed to try and compensate. If this is possible, it may be a viable option which outweighs the risks of being backordered during the holiday season.

The people of Chicago understand the current supply chain issues, but there are some CEOs who are kicking themselves for not having better visibility and a warehousing option for storage located in a key area. If you have questions about how Unibox Warehouse can help your supply chain visibility and storage become an asset, please reach out. Our warehouse is located just south of Chicago with easy access to 294, 57, & 80.

The nation’s current supply chain problems are continuing to wreak havoc. Research shows that 95% of restaurants across the US have suffered significant shortages. Most of these restaurants have been forced to change their menus and increase pricing as a result.

Currently, President Biden is working on alleviating some bottlenecks by negotiating for two major California ports to operate around the clock. On the other hand, there are also some ways businesses can improve supply chain processes on their own.

1. Outsourcing

Using a supply chain expert doesn’t have to mean losing control. Strategies should be put in place so that businesses can lower their resource costs, have greater efficiency, and utilize a greater form of expertise.

When a credible supply chain provider is used, it can greatly reduce the time and energy a general manager and other staff spends managing orders and claims. That way, those in a particular store can focus on more revenue increasing tasks.

2. Technology that puts customers first

While a positive customer experience must remain as the number one priority, cutting costs doesn’t have to take a back seat. With the right technology, visibility can be clear enough to give an accurate picture of all processes to supply chain decision makers.

This makes it easy to identify weaknesses and opportunities and make real-time decisions. Whether there is a need for warehouse storage, cross docking, transportation, or last mile delivery, the right supply chain experts can help restaurants and produce businesses save time & money.

3. Product placement

A key way to increase efficiency and eliminate shipping time is by aligning aspects of the supply chain according to geography. Shipping & storage with a close distance from the end destination will greatly reduce transit time and will ensure less difficulties if volume needs change.

Given the current driver shortage, and temperature-controlled capacities at a minimum, transportation alone is a major element of any supply chain. Having an LTL connection should be a part of any logistics strategy.