How Order Management Solutions Can Help to Reduce Supply Chain Costs


Think of any business, in any industry...what is one of their main goals? I would say, arguably, that for for-profit businesses, one of the main goals to increase sales while decreasing the cost of making those sales.

The current economic climate has put strain on many supply chains, forcing companies to think outside the box to find new ways to cut costs. Supply Chain Managers are constantly looking for ways to lower spending without making an impact on the quality of the product or accuracy of services being delivered.

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In order to succeed, supply chains must be continually evolving to meet new demands and needs of clients and the consumer, which requires unique problem solving and up-to-date supply chain and order management system services.

Innovative supply chain management technology and solutions are leading the way in improving the efficiency and productivity of these companies, allowing for more affordable production, delivery and lower prices for the consumer. 

The importance of having the right tools

Comprehensive supply chain management solutions will give you a boost on your competitors. Having inventory visibility across all levels of the supply chain and being able to manage orders from a single, unified platform can help you increase your perfect orders, your sales and profits. Too many times sales get missed out on because of improper manual logging, inventory errors, and human error in order management. 

How does a unified order mangement platform help?  Be providing you capabilities such as:

  • Locating the inventory across multiple locations to fulfill each line item of an order in the optimal manner
  • Receiving real-time updates on trends, inventory needs and customers
  • Gaining end-to-end visibility across your supply chain

Also essential to increasing profits while reducing supply chain costs is having the right people on your team. Individuals trained to customize and run complex supply chain management software are in high demand. Firms that sell software and also contract employees trained on the software eliminate several steps from the process of implementing a new supply chain management system

If you do not have the right software and employees in your supply chain, you run the risk of costly disruption within the chain. The process' moniker, supply chain, implies that when one link is broken, it weakens or breaks the chain. When a disruption, such as out-of-stock items or a backorder, occurs; supply chains lose money and potential business moving forward.

"Supply chain disruptions lead to drastic increases in costs and losses of shareholder value, with examples of companies going bankrupt as a consequence," said Volodymr Babich, professor of operations and information management at Georgetown University, in an interview with Entrepreneur magazine.

Babich outlined a few ways supply chains can improve operations without going over budget. One case study in creative cost reduction is to experiment with the way a company is packaging items before delivery. Making sure the most efficient strategy is deployed in product packaging seems insignificant, but can save a large supply chain hundreds of thousands to millions of dollars over several years.

A photograph-to-canvas company recently altered its packaging practices after realizing some problems had been occurring and costing the company money. The products being distributed to customers were found to be wrapped in an unnecessary amount of protection in a standard box.

Rather than spend the time and manpower on the excessive wrapping, the company decided to work with other members of the supply chain to develop a way to package the small items in more cost-effective boxes. The design was then shared across the supply chain through management technology to ensure all aspects of the company were aware of the changes. When changes are made, making sure the entire network is notified of the changes is the key to lessening disruptions.

Click below to learn more about how your organization can optimize their supply chain and order management solutions for increased efficiency and profits: