When learning how to best grow your supply chain you may come across the term operational efficiency. Operational efficiency is the capability to deliver products to customers in the most cost-effective manner possible in a high quality manner.
While the best practices for maximizing operational efficiency are different for each individual organization, businesses use many of the same measurements and techniques to maximize operational efficiency and eliminate inefficiencies that stifle earnings or growth.
There are many reasons to focus on operation efficiency for your business. Some of these reasons include:
- Finding business processes and workflows that are ineffective
- Tracking your products in a better way, allowing for a reduction of damage or quality issues
- Helping to achieve better visibility
- Building of customer trust and loyalty
But how can one achieve operational efficiency?
As a business owner the first step is to list your company’s processes and follow them to discover whether they’re being performed in the correct manner. If you identify any failures in your process you can know look into alternatives to improve them. If you are able to identify failures in your processes, try to study alternatives to improve them.
Next identify and eliminate waste by targeting issues like poor production planning or bottlenecks by spending more time being a part of the process. This will allow you to provide better support and find more opportunities for improvements.
Finally use tools to continue to monitor and manage performances of everyone working within your supply chain. Implementing standing meeting with your team and use that time to analyze completion of tasks together.
Remember with the proper set-up and business processes you can remove waste, reduce labor and save money for your business. Contact us today to learn how we can help you accomplish operational efficiency.