Supply chain is a crucial part of inventory management and the overall business functioning of an organisation. An efficient supply chain helps a business save money and reduces wait-time for products in demand, increasing customer satisfaction.
Top ways to improve supply chain finance management
An inefficient supply chain can cause disruptions in a business’s functioning. Hence, it is important to plan prudently for efficient supply chain management.
- Predicting demand
Companies should refine their foreseeing capabilities. It is impossible to forecast demand accurately, but foreseeing can help in a successful product rollout. Preparing well for the surges in periods of demand and lull, and proper management between them will help keep customers satisfied and lead to brand name prosperity.
- Adopting lean practices
Walking on the safe road will keep the supply chain running rich and wasteful. Individuals wondering about what is supply chain management must strive towards making this chain lean and efficient.
Further identifying opportunities to streamline work and minimising waste is equally important to improve supply chain finance.
Apart from bettering the supply chain, one of the important tips to grow a business lies in adapting better cost-saving methods.
- Improving supplier collaboration
Maintaining a collaborative relationship with suppliers is important in supply chain finance. There is a need to communicate efficiently with suppliers and explain a programme’s benefits. This method will help them suppliers gauge long-term benefits and see the challenges involved.
- Reviewing internal system and process
One of the most important factors to affect supply chain finance is the internal policies of a business. Companies should make sure that any changes in their internal system suit their suppliers and that all the documents are signed legally with the proper legal authority. Besides appreciating what is supply chain, this is important for managing the same.
- Adopting data management technology
An increase in scale and complexity of global organisations leads to difficulty in analysing expenses and the relationship that companies have with different suppliers.
Adopting data management technology will help an organisation manage such acquired data more efficiently.
Adopting this technology can also benefit prospective individuals thinking about how to build a business brand.
- Establishing the desired outcome and resource accordingly
Supply chain financing can benefit substantially if a business owner has clear objectives and a team of people who can measure and influence changes.
It is also important to choose the right banking partner to support a company’s working capital deficits. For this purpose, different NBFCs across the country provide a business loan with attractive features.
For instance, Bajaj Finserv provides pre-approved offers on business loans and personal loans. Doing so ensures speedier approval. To check your pre-approved offer, you need to enter your name and contact details.
- Monitoring finance flow
One should constantly track the payment terms and conditions with all the groups associated with the supply chain. Entrepreneurs must know how to pay for logistics, how often to pay, and the different tools to use. This process will help in streamlining the cash flow and improve supply chain finance.
- Setting clear KPIs
Setting the right Key Performance Indicators depends on the needs of the business. KPIs serve as a good incentive for the personnel to increase the business value and protect it against risks. KPIs also help the team towards achieving required goals.
To improve supply chain finance, logistics experts and controllers must work together as a team. By following the ways mentioned above, entrepreneurs can kick start the growth plan and maximise working capitals.
Supply chain companies have faced major disruption in the past year or two, thanks to the prevailing global economic situation. As per an ISM survey, around 75% of companies fell prey to supply chain disruption in some way or another. This crisis has initiated the redesign of supply chain finance management.