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Supply Chain Optimisation: A Guide 

Supply Chain Optimisation
Supply Chain Optimisation

Supply chains can be extremely complex to manage, especially when various suppliers and goods are included. 

Having a supply chain optimisation solution can help enhance your operation’s efficiency, reduce costs by conserving resources, increase transparency and reduce stress for supply chain managers.

This article will not only explore supply chain management and optimisation but why Locate2u is the delivery management software that can bring your business to new heights. 

supply chain management and optimisation

What Is Supply Chain Optimisation? 

Supply chain optimisation (SCO) involves adjusting a supply chain’s operations to create optimal efficiency. 

SCO can be based on a number of essential performance measures that cover the placement of inventory within the supply chain to reduce distribution costs, transportation costs and manufacturing costs. 

The entire procedure applies mathematical modeling strategies via software with an aim to give customers products at a lower cost whilst maintaining a high profit margin. 

Supply chain optimisation can act as a solution when it comes to larger-scale data-intensive issues, employing linear programming and mixed-integer solvers. 

delivery management software

Best Practice For Supply Chain Optimisation

There is no one way approach to supply chain optimisation given not all businesses are in the same boat. A prime objective of SCO is comprehending the most efficient positioning for inventory in the supply chain.

Using a centralised management software can help keep better track of your finances, sales systems, inventory and ensure they work seamlessly together. 

This type of software can also have information readily available in a central database where other systems have access to, creating a streamlined process. 

Another strategy businesses should consider is reducing costs through optimised inventory. Storing and holding inventory is incredibly expensive, which is why it’s important to optimise your supply chain through demand planning and forecasting. 

This involves building a plan to initiate stability between how much want in terms of goods and how to supply it efficiently. In doing so, you’ll never run out and customers won’t seek out other alternatives. It also means you won’t have more than what is required. 

Creating a governing supply chain council can also provide direction and assist in uniting supply chain procedure with the operation’s overarching approach. The council should comprise lower-level management and executive management to create and discuss strategies for efficiency and utility. 

Supply Chain Planning & Optimisation

Key Phases of Supply Chain Planning & Optimisation 

Below are the three phases of supply chain planning and optimisation:

Supply Chain Design

Supply chain design is the decisions of upper management that place future anticipations into deliberation. An example of a strategic decision is considering the location of warehouse facilities and the movement of goods between them. 

Supply Chain Planning

Supply chain planning helps businesses equal customer demand for goods through balancing supply and demand. This can be achieved through inventory management and the orchestration of assets to optimise the transportation of products, services and information from the supplier to the customer. 

Supply Chain Execution

Supply chain execution is the final phase in supply chain operations which executes the flow of goods throughout the whole chain. This stage focuses on acquiring goods for distribution to warehouses prior to sales. In a more broad sense, it’s the phase that prepares the supply chain products where they are most required. 

How To Optimise Supply Chain 

With the growth of your supply chain and expansion of your global supply chain network, improving management and optimising your supply chain is crucial to ensure your business’ success.


planning supply chain optimisation

If you fail to plan you plan to fail and this couldn’t be more relevant when talking about optimising your supply chain. Planning will assist you in preventing problems with your logistics chain. 

You don’t necessarily have to pay more for urgent order fulfillment, however, it could lead to an unnecessary accumulation of costs. Manage your inventory and order fulfillment accordingly and you’re on the right track. 

Maintain Relationship With Supplier

Maintain Relationship With Supplier

Maintaining a strong partnership and instigating thorough communication with suppliers is crucial in optimising your supply chain and reducing shipping lead times.

It’s an indicator of your business’ success and should be routinely strengthened as it can make the transaction process easier, reduce possibility of conflict and improve both parties’ performance. 

Regular Reviews

supply chain regular review

You should also be carrying out regular reviews of strategies and policies to ensure they are still relevant and effective. By doing this, you’ll mitigate theft, fraud and avoid other issues like congestion within the company. 

When creating a mitigation plan you should identify possible dangers, the probability of it happening, the financial impact and in doing so, build prevention measures. 

Machine Learning

Machine learning is the automation of data analysis that enables software applications to make more accurate predictions without having to be expressly programmed.

Using machine learning algorithms allows businesses to make smarter decisions and improve supplier-customer efficiency,

Benefits Of Supply Chain Optimisation

Now you know how to optimise your supply chain, below will highlight the many benefits such as reduced costs, customer satisfaction, improved planning and enhanced quality.

Reduced Costs 

supply chain reduced cost

Optimising your supply chain looks for procedures and policies that are inefficient and ultimately wasting resources. Automating such issues can conserve your resources where they’ll be allocated to other sections of your supply chain.

Also, supply chain optimisation helps businesses keep their inventory in check and avoid excessive stock, meaning there is less money sitting in the warehouse. 

Customer Satisfaction 

supply chain customer satisfaction

 Having a reliable supply chain optimisation software increases transparency across the supply chain. With the customer being more involved in the process, they can experience better service where their orders will be delivered on time, without issue. Additionally, the operation can comprehend and accommodate their customers’ needs more effectively. 

Improved Supply Chain Planning 

Improved Supply Chain Planning 

There are a myriad of factors when it comes to supply chain planning. Having a strong sense of visibility into supply chain dynamics and performance allows you to better plan the location of different facilities. 

You can find out the best position for warehouses to secure efficient delivery of goods to customers whilst reducing supply chain costs. 

Enhanced Quality 

supply chain enhanced quality

Supply chain optimisation provides a method that makes it simple to report on the end-to-end production by sourcing materials till it meets the customers doorstep. The increase in quality of your supply chain transforms shoppers into customers with an increased probability of repeat purchases. 

Technology Used To Optimise Supply Chain

Locate2u is the perfect tool for automating your delivery experience. With one click you can dispatch bookings to your team and track their live location throughout the day. 

You can also send a live tracking link to customers so they access full visibility of their booking and anticipate when their delivery will arrive. 

If you’re wanting to save your business time and money, then Locate2u’s route optimisation solution can help. Have the most efficient routes built in just seconds so you can focus on other business operations, increasing your overall productivity. 

Stop calling your team while on the road, asking for status and the whereabouts of the driver. Using Locate2u means you can have all that information in one place so team members can inform customers should they inquire about their delivery. 

delivery management app


Throw away the pen and paper and choose Locate2u to optimise your business. With this software you can optimise your routes for the most efficient journey for your drivers, access real-time tracking and booking management. 

Learn more about how Locate2u can enhance your business’ performance by clicking here. 

About the author

Marketing Coordinator at Locate2u having completed a Bachelor of Creative Arts, majoring in English Literature and Creative Writing. I have extensive experience in editing and proofreading, as well as creating content for a range of audiences.

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