What supply chain indicators should you be tracking? 

By overseeing the various stages in a product's creation right through to delivery to the end customer, the supply chain is a key lever in a company's commercial offering. A regular monitoring of the cycles that make up the supply chain enables greater efficiency and cost control, and thus boosts your company's competitiveness.

However, the wide variety of activities that make up the supply chain can make it difficult to identify the essential indicators. essential indicators to implement an effective development strategy.

For you, we have detailed the main Supply Chain Management (SCM) indicators to which your team must devote its full attention. 

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Keeping a close eye on your budget

The purpose of the supply chain is to meet customer requirements by achieving the time and budget targets that have been set. Financial management is therefore a priority for which you need to implement effective analysis and monitoring tools. Avoid unpleasant surprises by anticipating possible scenarios! 

Among the main costs, we advise you to keep an eye on transactions concerning :

• supplier costs ;
• overstocking costs ;
• costs related to the distributors responsible for selling the products;
• resource mobilization costs (fuel, vehicles).  

To anticipate changes in these costs and be able to track the allocation of funds, you can use APS - Advanced Planning and Scheduling. This tool will help you make the right decisions and optimize your budget.

Thanks to realistic assumptions, the APS will enable you to anticipate needs and thus implement better management. Mapping the costs of each stage in the supply chain is also a diagramming tool that can simplify budget control.

Keeping track of flows

Regular monitoring of the various flows in the supply chain is not something to be taken lightly, as controlling these flows is a crucial indicator of the health of your business. Keeping an eye on this data will help you streamline your business, andavoid management problems that can lead to production slowdowns or financial loss.

 Here are some examples of flows to watch out for:

• information flows ;
• material flows, transport, stock coverage, etc. ;
• financial flows, storage time, delivery information.

Observing theevolution of these flows means analyzing a vast amount of data. It is therefore essential to identify the links between each link.

The interconnectedness of these flows means that a malfunction localized to a specific activity can quickly have widespread repercussions. To ensure that we are always in a position to satisfy our customers, it is essential to have a good grasp of these factors. 

Optimize data analysis and security

Collecting and analyzing supply chain data is no guarantee of efficiency if this sensitive data is not secure. With the supply chain at the heart of your business, it's vital to protect flow-related information to maintain the trust of your customers and suppliers.  

Digitization and the development of digital tools now ensure that flows are managed securely. Blockchain technology makes it possible to store data securely and transmit it easily to each user. Data management is shared, enabling everyone to check the validity of the information and access it quickly.

As far as Key Performance Indicators are concerned, many software packages now provide an overview of logistical developments. Dashboards for the various indicators alert you to major changes. 

Among the main KPIs, we encourage you to pay particular attention to :

• Alert KPIs, to be informed of any anomaly;
• Anticipatory KPIs, to avoid repeating past mistakes;
• balancing KPIs, so you have all the information you need in your head before making decisions.

Today, a wide range of software packages can group data together for you, making it easier to make the right decisions. They can alsoautomate some of the steps in the supply chain and optimize many flows. 

For example, Manufacturing Resource Planning software enables you to optimize the purchase of raw materials according to your company's needs. Transport Management Systems andEnterprise Resource Planning software can calculate the cheapest and most efficient routes for you.  

Digital technology is a constantly evolving field, and tools are rapidly being perfected. That's why it's important for managers to keep abreast of the latest advances and remain competitive by making optimum use of new technologies.

Facilitating cooperation

In view of the many stages involved in the supply chain, dialogue between the various players is essential, and a key factor in the success of your main objective: to meet customer expectations and build loyalty.

To achieve this, communication between each link in the production chain is essential, and must be the focus of real management efforts. It's a good idea to regularly remind your teams that they are part of a larger project, and that everyone's contribution serves this common goal. Using a cooperative dashboard can help you streamline information and create the necessary cohesion.

Management must also be vigilant to ensure that the necessary information is redistributed to the appropriate departments.

Be vigilant, and keep an overview of the supply chain to ensure that information flows smoothly according to individual needs.

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Developing transparent management 

Being more transparent about supply chain activities is a challenge that responds to growing expectations regarding communication, on the part of customers as well as service providers. Detailed knowledge of the companies in which investments are made is now a real argument for retaining partners. 

A diagram always speaks louder than a long speech. Visual representation also helps you to make information quickly accessible to different people.

Keeping up to date

In order to adapt your supply chain activities as effectively as possible, it's important to keep abreast of current issues. This will enable you to keep in step with the concerns of your customers and employees, and to promote the values upheld by your company. 

Adapting your management strategy to current events is also a key factor in attracting new talent!

Today, questions concerning the environmental performance of companies are very much in the news. Highlighting elements that respect the principles of sobriety is an opportunity to show that your company takes account of the socio-political context. Reorienting production towards eco-designed products that are easy to recycle is an interesting example of adapting to the environmental context. 

In the specific field of the supply chain, the fight against overstocking is a good lever for starting an ecological transition. With the help of software such as the Warehouse Management System, you can avoid stock-outs and make savings by limiting storage, while reducing your carbon footprint.

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Attracting new talent

Attracting multi-skilled profiles is essential to staying competitive. The knowledge brought by these new talents, trained in digital tools and the latest management techniques, will keep you in touch with developments in the sector. This will enable you to maintain or propel your company as a benchmark in your field.

Procemo is well aware of the difficulties involved in recruiting top talent for a company, and offers a range of recruitment support services tailored to your needs. Our experts will help you identify candidates' priorities and provide you with concrete solutions to make your company more attractive. 

By being supported throughout the recruitment process, you'll not only be able to attract the best-performing profiles, but also avoid the pitfalls of poor recruitment. 

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Green Supply Chain Management 

Adapting to environmental challenges is a growing concern for many business sectors, and Green Supply Chain Management is emerging as a sector of the future. 

Organizing your supply chain in line with the principles of sustainable development is a wise long-term move. Not only will you be in tune with current social concerns, but you'll also be optimizing your budget! 

Cross docking, for example, eliminates the need for warehousing by transferring the product directly from the unloading dock to the shipping dock; an efficient organization that saves time and money.

This move towards Green Supply Chain Management must be accompanied by a long-term commitment to action. It's not just a fad, but also a change in regulations and consumer expectations.

To put your commitment into practice, we advise you to implement a policy of transparency regarding your production chain. Optimizing transport and taking a greater interest in responsible purchasing are also promising solutions. 

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Conclusion 

Supply chains have undergone changes in management techniques. These changes show that today's Supply chain Management strategies now consider respect for the environment and employee well-being as key elements.

Demand has changed and sobriety has become a priority. This sales argument encourages us not to sell what we make, but to make only what we sell.

In addition digital tools tools are an invaluable resource for successfully implementing this new just-in-time production mode.

Strategic transformations of the supply chain also respond to a demand for transparency about products and how they are manufactured. It is therefore certain that tomorrow's successful companies will be those that know how to maintain good good communication and attentive listening to the new demands of their customers.

Don't hesitate to for support to reassess your customers' and partners' priorities!