Supply Chain Management Best Practices:

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 supply chain best practices. With a wide range of supply chain management courses available today, there is no excuse for failing to prepare your organization adequately to be as efficient as possible and implement these practices.

How to Improve Supply Chain Operations?

Supply chain management is a key part of any company’s operations. The goal of a supply chain is to keep products moving from their origin to the end customer. Supply chain management involves coordinating everything from purchasing raw materials to distributing finished products. Many companies use technology to improve their supply chain operations. For example, some companies use connected devices such as IoT sensors and RFID tags to track inventory and other key data. By collecting this data, companies can identify problems early on and take action before they become major issues.

Developing and Recruiting Supply Chain Professionals:

Offering a competitive salary and benefits, supply chain professionals can be difficult to find. Many companies use job boards and social media to find qualified candidates, but some shortage areas include engineering and technology, logistics, transportation, and finance. Many in the supply chain industry are self-taught or learn on the job. To get started, check out local community colleges for courses in supply chain management. Or, look for organizations that sponsor training programs for new supply chain professionals. AIMS’ Online Supply Chain Management Certification Courses and Level 7 Diploma in Logistics and Supply Chain Management are the best examples.

supply chain best practices

5 Key Supply Chain Best Practices:

An effective supply chain management process is a series of actions that link customers to the raw materials, components, and finished goods they need to run their business. This can include everything from production planning to inventory management to transportation and warehousing. It’s important for companies to have a clear vision of how every aspect of their supply chain works together because this will help them find efficiencies as they go along and make sure that every step of the process contributes to their overall goals.

There are many different types of supply chains out there, each with its own characteristics and challenges. But whatever type you’re working with, it’s important to remember that every company is unique and therefore requires a unique approach to managing its supply chain.

Here are the 5 key supplier management best practices:

1. Create A Supply Chain Management Council:

The work of the governing council is to provide direction and align the supply chain’s best 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 supply chain management best 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 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.

supply chain management best practices

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 allows 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 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 service providers and suppliers are being asked to provide tangible information about what green initiatives they are taking in their practices.

supply chain practices

Why Supply Chain Organizations Should Invest in Software & Technology?

Many businesses utilize a variety of systems to manage their supply chain operations. These programs, which typically integrate with the enterprise resource planning (ERP) system, are usually basic Excel spreadsheets and applications.

  • The supply chain components mentioned previously frequently use various methods and manual processes to handle supply chain tasks. As a result, the current fast-moving business environment is costly to miss.
  • It is important to have real-time information and supply chain analytics to ensure data-driven strategies and quick action when necessary. Automation, predictive analytics, and digitized documentation are already making supply chains more efficient and economical.
  • The most powerful tool in supply chain optimization is a comprehensive supply chain management solution that can handle all aspects of the business, from all operational functions to sales and marketing.

Other Supplier Management Best Practices:

A successful supply chain is one that is able to connect buyers and sellers with minimal conflicts, and in turn, minimize costs. However, it is not an easy task to achieve. There are a number of best practices that can help you achieve a high-performing supply chain.

  • One such practice is to use a COOP (collaborative order planning) model. This model allows organizations to share data and plan their orders together. This helps cut down on the errors and delays that are characteristic of other models.
  • Another best practice is to have a strong supplier network. This ensures that there are always reliable sources for your suppliers to tap into, minimizing disruptions in production.
  • Keeping track of your inventory levels at all times will allow you to monitor how many products you are selling and purchasing. It will also help you keep your costs under control.


Above mentioned practices 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 educated, so they can implement these best practices all throughout the supply chain in your organization.