4 Steps to Finding Cost Savings in Your Supply Chain

Here are four easy steps you can follow to create a leaner, more cost effective supply chain for your business.

1. 1. DATA COLLECTION– The first most crucial step is insuring you have the most effective TMS (Transportation Management Service) for your business in place. With an effective TMS in place, you will be able to collect all of the necessary and crucial data about your Supply Chain. Without this key component, you will surely find your-self with an inefficient supply chain (often times guessing vs making educated decisions about your supply chain).

1. 1. ANALYZING YOUR DATA – The second step involves analyzing the data collected through your TMS. This data will include information on your companies transportation moves as well as information on all other users of the network.

1. 1. MAKE DECISIONS– Now it’s time to start making some decisions based on the information you have uncovered in your analytics. These decisions can be tactical or strategic. Either way, you can now rest easy knowing you are making a decision based o hard data vs guess work.

1. EXECUTION – Now that decisions have been made, it’s time to execute! Execution will typically involve several levers, including targeted procurement, mode conversion, and various forms of optimization. It might also consist of implementing new production and sourcing schedules to minimize supply chain costs.Follow the above four simple steps in a wash, rinse, repeat cycle and you will find your business constantly maintaining an efficient and cost effective Supply Chain.Looking for ways to improve your supply chain? Contact Millennium Logistics