Review a restaurant chain that does not currently have a major public problem bu

Question

Review a restaurant chain that does not currently have a major public problem but would benefit from evaluating its manufacturing process to improve competitiveness. Specifically, provide recommendations on how to improve the company's current supply chain. Create a flowchart to illustrate your recommendations. Provide a summary of how you came to your recommendations. Include any formal strategies and informal thought processes you used to reach your conclusions. Provide rationale for either using or not using Six Sigma methodology, ISO quality benchmarking, lean supply chain processes, or TQM

Explanation / Answer

In the world of business, operational efficiency is vital when trying to stay ahead of the competition. While larger enterprises remain poised to reap the benefits from optimized supply chain management (SCM), these advantages are also reachable for organizations of all sizes, including small businesses.

Recent innovations in the world of supplier management include an embracing of cloud-based technology. This dovetails nicely into the mobile device revolution, as companies now use smartphones and tablet computers for real-time access to data about their supply chain.

This article looks at some of the current best-of-breed tools and techniques to improve supplier management.

1. Employ cloud-based systems that offer cost savings and operational efficiencies.

One of the major advantages of cloud-based systems is the ability to leverage the domain experts found in the companies providing these systems. Small businesses usually don’t have the budget for their own IT department. By using a supplier management system in the cloud, a business enjoys access to a team focused on the software and networking hardware side of the shop. This frees up internal staff to run day-to-day business operations and results in operational savings and efficiencies.

Related: 4 Steps to Effective Supplier Relationship Management

2. Use real-time dashboard reporting to take the pulse of a supplier chain.

A management system must provide robust capabilities for real-time reporting. This should include on-screen dashboards that provide a view of the entire supplier chain. The software also needs to offer clients for the major mobile platforms, including iOS, Android, Windows Phone, and BlackBerry. Additionally, these mobile dashboard screens need to effectively scale between the smartphone and tablet form factors, which is easier to do in iOS.

Reporting is vital for tracking overall chain performance and metrics. Data for short orders, inventory turns, and on-time shipments need to be easily accessible. This information is crucial for improving the efficiency of any supplier management system.

3. Integrate logistical processes with suppliers.

No matter the size of a business, it remains important to integrate logistical processes with the suppliers for that organization. While not totally dependent on software systems, certain enterprise resource planning (ERP) applications help to facilitate communication and synergies between a business and its supplier community. If a supplier is able to access the rate at which a business runs through its inventory, they are better able to meet any changes in demand, improving operational efficiencies for both organizations.

4. Choose an ERP application that fits with existing systems.

Small companies need to choose an ERP system wisely. The advantages of cloud-based software and robust dashboards were discussed earlier, but it is highly important that any ERP application seamlessly integrates with existing applications. Some SCM software even works as a module within small business accounting software like QuickBooks.

5. Don’t skimp on SCM training for internal personnel.

It is important not to overlook internal training of employees in the concepts of SCM and logistics. When everybody in the chain is comfortable with their individual role within the overall process, the entire system works more smoothly and provides a positive impact to the bottom line.

Improving a small business’s supplier chain processes doesn’t have to be a complex task. Implementing these five techniques is a great way to ensure a small firm’s logistics chain runs more efficiently by minimizing costs, improving profits, and ultimately leading to a more successful business.

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