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What is Supply Chain Flexibility?
Supply chain flexibility is the process of creating a more flexible supply chain. This means changing the way we think about the supply chain — the series of processes that are involved in both the production and distribution of goods. The supply chain is vital to a company, as everything from production of the commodity to its distribution channels will have an effect on a company’s bottom line. Below, we will analyze the value in supply chain flexibility, including the benefits of having a flexible supply chain and how to achieve greater flexibility in this area.
What are the Most Valuable Aspects of Supply Chain Flexibility?
Supply chain flexibility has immense benefits when compared to traditional supply chain management. Traditional supply chain management is rigid and does not allow for rapid changes as needed. This is known to cause serious disruptions to the entire supply chain when demand changes or when there is a kink or holdup in the supply chain. Flexibility in the supply chain allows it to function just like a business naturally functions, accommodating the day-to-day changes that naturally occur.
Ease of Scaling
Supply chain flexibility means that your business can more easily scale to meet the needs of your consumers. When your business owns every aspect of the supply chain, it takes a lot longer to immediately scale to meet an uptick in business or to scale down when things are slower. With a third-party logistics company managing your supply chain, there is an incredible amount of flexibility that will provide an immediate benefit to your company. Third party management will provide immediate resources to your company if things are busy, or can immediately scale down as needed to meet the appropriate demand. This means faster results and service to your customers without affecting a business’ bottom line.
With greater supply chain flexibility, most businesses will see greater cost effectiveness as a direct result. A supply chain that is flexible will adapt to meet the natural ebb and flow of your business, rather than resources being wasted due to the inability to adapt and make immediate changes. In many cases, changes to various aspects of your supply chain will be necessary, as will the ability to scale up to meet demand so you do not miss out on potential revenue.
Another valuable aspect of a flexible supply chain is the reduction in liability your business will face. Various aspects of supply chain management carry heavy liability because of the inherent risks and danger associated with the production and distribution of commodities. Accidents can and will happen, and your company will be liable for dealing with them when you have a rigid supply chain. With a flexible third party management of your supply chain, the liability will fall on the third-party provider, not you. This is a huge cost reduction opportunity for many businesses, and often leads to an increase in safety across the entire industry.
How to Achieve a Flexible Supply Chain
Partner with National Retail Systems today to be on your way to revolutionizing the way your company handles supply chain management. National Retail Systems has been powering supply chains for over 60 years, and we are capable of handling any piece of the supply chain as a reliable 3PL provider. We work with our customers every step of the way to create a more flexible and valuable supply chain, providing extensive oversight and full transparency throughout the entire process. Contact us today to learn more about everything we have to offer to you and your business.
The Ultimate 3PL
National Retail Systems, Inc. (NRS) includes Keystone Freight Corp. & National Retail Transportation, Inc. (NRT). NRS is an asset based 3PL that has been providing logistics services for the World’s leading retail companies for 60+ years. Our hub locations include: New York & New Jersey; Los Angeles, CA; Inland Empire, CA; Savannah, GA; Columbus, OH; Greensboro, NC; and Baltimore, MD.