When it comes to improving the supply chain of packaging companies there is often a wide variety of options. But why should a packaging company look at their supply chain as an area to improve?
We believe that the efficiency gains and cost reductions of a well optimized supply chain make it the perfect option to look at. Often the costs of undertaking a review and improvement project can be offset by the savings that are possible.
So, where should packaging companies start when it comes to looking at their supply chain?
Sourcing Raw Materials
Sourcing raw materials is a key part of the supply chain process and one that often relies on good relations. When evaluating suppliers, the cost of materials is only one area to consider. Often paying a little bit extra for improved reliability and speed can save in the long run.
Consider how responsive the supplier is to communications, are they able to be flexible if you need to meet increased demand, and are they likely to ship on time. The last thing you want is a slow supplier, forcing you to order more material than you would like in case of future delays.
Eliminate Data Silos
A data silo exists when only one group of people can access information when the information would be of value to different departments across the company. This can lead to costly mistakes, such as double ordering, if departments are not able to access updated and relevant information.
One way of eliminating this is by utilising a supply chain management platform. This has many benefits but can help ensure a continuous flow of raw material into the business as they are needed. Also, with a centralised system able to hold data, packaging companies can ensure all departments are able to access information in real-time.
Define a Good Project Plan
Supply chain efficiency is not a once and done thing, rather it is an ongoing process. Creating a comprehensive plan can ensure that your packaging company is working towards defined objectives and serves as a framework that can guide strategic investments. This project plan helps align business objectives to the improvements being made, allowing you to score potential upgrades and better understand their impact on your business.
Improved supply chain helps packaging companies to remain competitive and able to react quickly to changes in demand but to achieve efficiency it requires collaboration of teams and departments. This can make the task of implementing a robust plan challenging but the payoff is worth the effort as you gain better visibility, enhanced ability to respond to crisis, and can reduce costs without compromising how you deliver to clients.
If you would like to find out how our supply chain experts can help your company shape and define an improvement project, then get in touch with us here.