In the world of supply chain management it is all about speed, precision and cooperation. Just like in the Formula 1.
A good working supply chain management system is like a perfect tuned formula 1 car. Cooperation and precision are crucial for succes. You need to have a team that gives attention to details. And that team has to value teamspirit; all for one and one for all! In a formula one team data is constantly analysed in order to learn how to get to maximum results. Also in supply chain management you need real time information. Both in racing and in logistics, precision is the key to succesfully reaching the finish before the competition. But how do you create such a well oiled supply chain management team? Here a 3 tips;
1. Set up an onboarding proces
Each teammember in a formula 1 circuit gets a training proces, not only about his tasks but he will also have to know what the tasks for all the other teammembers are. In that way every teammember knows what the rest of the teams does and why they must (and will!) rely on the capabilities of the new teammember. The new teammember on his turn knows to rely on the existing teammembers and understands the importance of the team spirit.
In a supply chain management system it is the same way, new orderpickers, reachtruckdrivers, teamleaders and so on have to be properly trained so that they know what their role is, what their responsibilities are but also what they can expect from each other. Next to that there must also be an onboarding proces for new clients. A new client must be introduced to the logistics team, they need to understand the needs and challenges of this new client. And the new client needs to be introduced to the customer service, operations, finance and last but not least; the ins and outs of the warehouse management system.
Just like Hannibal Smith said from The A-team; “I love it when a plan comes together”.
2. Set up SOP’s
In formula 1 they work with rigid standard procedures. Lot’s of forms, lot’s of ticking boxes. But it makes sure that nothing can be forgotten. You can compare it with the aircraft industry, where safety is top priority.
In a supply chain management system we work with SOP’s. Together with the client the operational department makes a Standard Operation Procedure specified for this specific client. Lot’s of things will be the same for lot’s of clients. But there can be specific differences in inbound proces, storing, picking, packing, shipping or even invoicing. These SOP’s should therefore be known by everybody in the company, not only operations but also customer service and finance.
3. Evaluate your supply chain management system
In the F1 circuit they measure a lot. And they do so to learn from it. Every change in the car, circuit, weather conditions and so on will be registered and evaluated. Every training, every competition. And because of that learningproces they get better.
A supply chain management system must do the same. Evaluate the results of each day, week, month, quarter, half year and year. How does the unloading of containers develop, what is your average putaway time, what is your average order processing time? Evaluate each item in the proces and learn where you can or should optimize. And what kind of investments would you need for this optimisation? If you can optimize than you can most likely reduce costs and time.
Can you optimize and gain speed?
With these above mentioned 3 tips you can strive to operational succes and maintain a lead in a competive world where precision and speed are key. Wondering how we can get you a supply chain like a formula 1 car? Contact us.