Best Supply Chain Practices That Improve Organizations

In the current highly competitive economic environment it is necessary to transform and improve your supply chain management practices so that you can produce great results while containing costs. One of the best ways to go about this is to adopt the processes, methods, and philosophies of the best supply chain practices. With a wide range of supply chain management courses available today, there is no excuse in failing to prepare your organization adequately to be as efficient as possible.

supply chain practices

1. Create a Supply Chain Management Council

The work of the governing council is to provide direction and align the best supply chain practices with the organization’s general strategy. The members of this council are drawn from all the top managers in the firm to the top corporate executives. This council helps to eliminate obstacles to success within the various parts of the organization by providing a highly effective cross-functional forum for communication.

2. Use Technology to Use Your Benefit

Most companies are choosing software that they hope is going to improve their efficiency, and then they arrange their processes and workflows around that selected technology. In this case, the best supply chain management practices require that you first review your processes to determine which ones need improvement. It is only after this review that you should choose the right technology that meets those specific process needs.

3. Establish Relationships With Your Main Suppliers

One of the most effective supply chain practices is to create a lasting partnership with suppliers long after signing a deal. However, to completely maximize this relationship, it must be a two-way communication where both the seller and buyer are actively managing the relationship. With a good alliance management system in place, it will be easier to capitalize on your buyer/supplier relationship to ensure sustained value and constant improvement.

4. Let Contracts Be Part of the Supply Chain Functions

Buying and procurement teams usually negotiate high potential during sourcing but never realize those huge saves fully. More companies today are choosing to move the contract management responsibility to be handled by the supply chain unit, rather purchasing, operations, finance or legal. This is one of the best supply chain practices that allow managers to leverage the organization’s expenditure, especially in areas where there are great opportunities for risk mitigation and cost reduction.

5. Green Initiatives Must Be Taken Seriously

Reducing the carbon footprint of your supply chain is not just nice any longer, but a necessary practice. Besides improving your overall efficiency, going green will also help you reach more consumers who are considering environmental impact when they select suppliers. That is why more services providers and suppliers are being asked to provide tangible information about what green initiatives they are taking in their supply chain management practices.


The top 5 best supply chain management practices mentioned above should be used as a roadmap and provide ideas to help you improve the overall performance of your organization. Ultimately, it always helps to have your employees take an online mba supply chain management, supply chain management diploma online, or other supply chain management courses or logistics management courses, that they can implement these best practices all through the supply chain in your organization.

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