In recent years, world events, such as COVID-19 or the war in Ukraine, have drastically impacted the logistics and transport of goods from farms and producers to consumers. To address these challenges, companies that have to deal with the disruptions, need to rearrange their strategies. This includes robust risk management, investment in supply chain technology, such as cloud based solutions and IoT, advanced automation and sustainability as these are the key to cope with supply chain disruptions.
A well run, efficient supply chain can enhance business and increase production efficiency, customer service and improve inventory levels and cash flow. We understand that as an e-commerce entrepreneur, manager, or company owner, dealing with weathering disruptions and optimising procurement is not simple. This is why there is a brand that can help overcome these challenges – RND. RND can reduce the strain on your budget by supplying high-quality, compliant products in this current economic situation.
Situation in the market
Since 2020 the world’s economic situation is still strained and pressured. First, the global pandemic, and now Russia’s invasion of Ukraine. The recovery of the economy has boosted global demand and caused raw material shortages and price increases. The demand for high-value, low-risk products is high. A steady supply is key in current times.
According to the 2023 Central Europe CFO Survey by Deloitte, slightly over 35% of respondents think that their company’s main issue is a lack of intermediate products, or goods that are used as inputs in the creation of other goods.
One of the causes of lacking assortment is the high cost and lack of drivers (expected to triple by 2026) in transport. Transport has become strained due to increased shipping and air freight prices, shortages in containers, raw materials and semiconductors. Raw material shortages and price increases both affect stock availability and lead times. On top of that, there is an ever-growing demand to keep up to date with technology, such as transition to electric vehicles and 5G as examples.
5 Steps to Minimise Supply Chain Costs
Procurement teams worldwide are challenged with keeping down costs for key materials, managing stock intake and keeping businesses and their manufacturing running. Thus, to improve the strategies for cost optimisation, it is important to enhance efficiency without sacrificing quality. For instance, considering supply chain technology, such as cloud based solutions and IoT, and also by focusing on advanced automation and sustainability.
Have a look below at our few steps to reduce supply chain issues in your business:
1. Find reliable suppliers
Building a strong relationship with reliable suppliers can help with cost savings. But what if you could look for a product source where you can buy everything all at once? Reducing the number of suppliers could result in efficiencies, saving time, keeping costs down by buying in bulk, and saving on transport and shipping while being mindful of CO2 and carbon footprint.
Many buyers check prices in multiple places to buy essential products as cheaply as possible, but with RND you can shop in one place, with one brand, and get everything you came for. RND gives you great quality and low prices combined, offering compliant products, exceptional value and a product you can trust.
2. Optimise your inventory
Insufficient stock can lead to missed sales opportunities and unhappy consumers, while maintaining excessive inventory levels can paralyse capital and increase warehousing costs. For example, by investing in flexible manufacturing systems or monitoring systems you can easily switch between product versions and track each step of the chain. Additionally, in order to create accurate demand predictions, establish close coordination with your sales and marketing divisions. Choose RND for a broad selection of high-quality products at competitive prices and do not worry about stockouts.
3. Implement automation
Even though manual methods are better in the early stages, automation supports expansion and scalability. The key to a simplified supply chain is real-time access. Monitoring, anticipating problems, and keeping ahead are made simpler with a single dashboard for several sales channels. Be proactive, address problems before they arise! Real-time insights prevent stock issues, avoid excess, and ensure customer satisfaction.
Also other technologies, like IoT or the cloud help effectively address supply chain challenges. Whereas IoT offers real-time tracking, predictive insights, efficient inventory management, accurate demand forecasting, and end-to-end visibility in supply chains, cloud technology centralises data, enhances collaboration, scales easily, reduces costs, and improves emergency recovery in supply chain management.
4. Focus on sustainable practices
Utilising resources wisely and implementing environmentally friendly methods decreases waste and lowers costs. And with the transition from linear to closed-loop, circular processes focused on waste reduction will be pivotal. Contemporary supply chains must align with and even expedite sustainability goals of organisations. Establishing credibility with stakeholders necessitates transparent value chains, achievable through technologies like blockchain. Sustainability can also increase revenue as customers focus on helping the environment. In short, doing good leads to successful business outcomes! Have a look at how to reduce your energy consumption with RND.
5. Understand your customer’s needs
Knowing what your customers want is one of the most important elements in providing a good service. You must take care of their wants in order to boost sales, lower supply chain expenses due to the fact that all of your production will be sold, and base your procurement methods on actual needs. RND can help you reach your targets by providing you with the right components, tools and devices at the right time.
Budget Friendly Solutions from RND
The pressure on cash flow can be relieved with RND products. We can help you maintain the workflow with stock availability and maintain your margins with competitively priced components, tools and devices. We can help service all your needs without forfeiting quality or reliability as we ensure that every delivery to us has already been inspected and up-to-date compliance requirements are met. We also obtain relevant certification documents and make them available to our customers, reducing risk of using unproven equipment.
