Logistics is still part of the traditional business where no changes have been made in the past years, apart from the way delivery is done and the technology that is used to control the system. Over the past years, many supply chain start-ups have established and grown well. What makes them outstanding is the skills they have in the business and their vision.
Supply chain management (SCM) requires many skills. It involves a series of activities and planning that starts from finding the raw materials to delivering the finished product to the customers. The SCM should be flawless in terms of management in order to affect the growth rate and success of such start-ups.
Skills For Supply Chain Startups
What are the skills required to grow the supply chain startups to the next level?
They are:
- Knowledge
- Planning
- Resource identification
- Product delivery
- Product returns
- Lead time management
- Connections
Knowledge
Any business starts with knowledge. Knowledge of the market and the ways to navigate inside the domain is extremely important. Finding the key solutions to the issues that the business can face and the methods to execute the activities is also important.
Planning
Supply chain startups need to plan well in their establishment for all activities related to logistics. Identify elements like warehouse needs, plant locations, plant size, delivery methods, and stocking. Plan for the efficient transportation costs and warehousing, along with how to utilize the workforce potential to the best.
Resource Identification
Finding the right providers for the raw materials, manufacturing units, or packaging units is important for maintaining the supply chain. Obtaining information like potential suppliers, address inventory, packagers, or asset managers as backups will also come in handy in an emergency.
Product Delivery
Delivery consists of order fulfillment, distribution strategies, transportation modes, route mapping, and cost of logistics. Startups can also hire or subsidize local warehouses or distribution networks for delivery of the products on time.
Product Return
The chances of product returns are much greater now than previously. Set up a network that can handle such task that involves the customers and the manufacturers. The steps include the return of defective products, shipment, and replacement. Monitor if the products are returned safely and manage an inventory of the returned products.
Lead Time Management
For supply chain management, lead time starts from the time when the product is ordered to the product delivery. Lead time management ensures that the cost and speed of the process do not exceed the delivery margin.
Connections
Connections refer to the communication network that maintains the relationship between the supply chain startups, customers, distributors, or manufacturers. It ensures that concerned people are aware of what is happening at all times. For example, a customer is informed about the delivery status, a manufacturer is informed about a number of products ordered, or a delivery executive is informed about the best routes to deliver the product.