Supply chain, as we know, continues to face numerous challenges that first appeared during the onset of the pandemic, forcing executives to adjust their business strategies and management styles. Our recent Industry Pulse Survey revealed that executives’ top supply chain concerns over the next six months are material shortages, project lead time and material costs.
At our latest executive roundtable, our friends at RIM Logistics, leaders in transportation services, joined us to discuss the best methods for improving a business’ supply chain management. These methods have been brought to their attention directly by their customers.
Below, we highlight the five areas executives at RIM Logistics have seen their more innovative clients focus on to increase their company’s success.
#1: Order to Cash
Start by revisiting your Order to Cash flow. Many business leaders overlook the individual steps of the supply chain and focus too much on factors such as providing the best unit price. Instead, focus should be spent on understanding how to keep your business running long-term and getting money quickly.
#2: Order Management
Mistakes are most often made within order management due to miscommunications between the ordering and logistics departments. As a result, there are incomplete or difficult to understand purchase orders, which lead to missed shipment dates, partial orders and missing customer deliverables. With increased internal communication, these mistakes are far less likely to occur.
#3: Sourcing
American companies attempting to shift their sourcing could potentially encounter supply disruptions. RIM Logistics has seen some of their leading clients implement, and find success utilizing, a hybrid model of sourcing from near and far.
#4: Transport
The use of air and ocean charters has become more prevalent in recent years. In some scenarios, RIM Logistics has seen tremendous success using smaller ships, allowing them to bypass congestion at the pier. Overall transit times have been drastically reduced for their customers.
#5: Data
Analyzing component transit values, such as pier dwell time, can be more meaningful than static milestones. By looking at this data, you can find ways to improve supply chain processes and reduce delivery time.
By focusing on these five key areas, your business can work to navigate supply chain challenges. RIM Logistics’ full presentation is available on request. Please contact us to obtain or to sign up for our next executive roundtable.
About our authors
Jerry Murphy
Jerry Murphy, CPA, CMA, CGMA, has more than 32 years of experience and is the partner-in-charge of Sikich’s Manufacturing and Distribution Services team. He specializes in assurance services and provides business advisory services in areas such as operations improvement, strategic planning and mergers and acquisitions.
Tracy Burkhart
Tracy Burkhart, CPA, has more than 20 years of experience in tax and advisory services. She uses her expertise to recognize tax opportunities and implications for privately held businesses, with specialized knowledge in manufacturing and distribution sectors.
