As much as we may enjoy seeing certain supply chain myths pop up time and time again, we feel that it's time we address them once and for all. With that in mind, here's a look at five of the most popular supply chain myths, as well as a quick overview of why they're completely wrong.
1. A Good Strategy Means Lowering Costs
While it sounds good in theory to constantly be looking at the bottom line, the truth is that the effectiveness of a supply chain extends beyond its total cost. Although there are certainly smart ways to lower costs and improve efficiency, there are also plenty of ways that will only serve to hurt your business in the long run. That's why we put so much effort into designing our delivery software, as it can ensure that businesses don't cut costs in other important areas.
2. A Good Strategy is Always Applicable
As tempting as it may be to try and develop a singular strategy for all of your supply chain needs, the truth is that different products demand different strategies. This is why a courier management software is so important, as it can help bolster communication and ensure that everyone is on the same page at all times. By developing different strategies for different products, each strategy will be able to react and adapt to changing needs as necessary. This is especially true for companies that regularly deal with a variety of products.
3. Supply Chain Managers Must Be Tech Experts
“Strong functional and technical experience required,” a requirement found on many supply chain manager job postings. While having technical skills is important, software has become user-friendly, and skills like communication, leadership and cross-functional awareness are important as well. Nowadays, the idea of supply chain has broadened to include more areas; therefore, a more broad range of skills is required to be a successful supply chain manager. Skills from understanding business strategy and people skills in combination with technical knowledge is required to be successful supply chain leaders. While it is always great to be an expert in one specific area, it is more beneficial to have a wider range of skills.
4. A Good Strategy Doesn't Need the Latest Technology
There are many businesses that are stuck in the past and think this whole technology thing is just a very resilient fad. We understand the value in sticking with what's comfortable, but the key is to find a balance between efficiency and comfort. If your business hasn't invested in a dispatch management software yet, then that might be the reason for your drop in overall performance. Although not everything needs to be automated, there are still plenty of tools available right now that can help streamline your existing process.
5. A Good Strategy Doesn't Care About Corporate Social Responsibility
CSR may seem unnecessary, and perhaps even costly, but it can have a positive impact on not just your local community, but your business as well. When companies start thinking creatively about how to improve their supply chain and make it environmentally conscious, unexpected benefits can develop. If you want to create a truly sustainable supply chain system, then you'll want to also think long and hard about the social responsibility of your business.