What is Supply Chain Network Optimization?  

Supply Chain Network Optimization

To complete any task efficiently, you must first have the right tools for the right job.

The supply chain is no different. In fact, those who facilitate the movement of freight depend upon technology and daily operations that are efficient and customized for their specific applications. This is where the idea of network optimization really comes into play.

While employing the latest technology is great, it only helps when optimized for your specific industry. If not, it can significantly impact your business in a negative way. 

Supply chain network optimization efforts help a company improve its service offerings, reduce working capital, and streamline their daily operations. More importantly, it sets the business up for success going into the foreseeable future.  

If you are new to supply chain optimization, this article is full of advice for you!

So, if you are ready to dive in and start optimizing your supply chain for success, keep reading!


What is Supply Chain Network Optimization? 

Think of supply chain network optimization as a complete review of the technology, tools, and resources you use to move freight every day. It is a service offered by 3PL companies and comes highly recommended by supply chain and logistics experts alike. 

After all, your supply chain is powered by various gears, affected by multiple variables, and is an ever-growing business. Your supply chain is simply not made up of just one singular process. Hence, supply chain network optimization is usually an all-encompassing endeavor.

When you work with a reputable 3PL, they start the supply chain optimization process by reviewing a few key areas of your processes. Things they typically review include the warehouse space you have, your business operations, and your goals and objectives. Additionally, a well-rounded 3PL will examine all other pain points that get sussed out in the initial review process. In order to optimize your supply chain network, it's important to gain a big picture perspective, which is what the best 3rd party logistics companies offer.

It is equally important to understand that an honest supply chain network optimization service is not an overnight ordeal. It takes time, dedication to transparency, and a collaboration of multiple parties in order to truly be successful. The best 3PLs that offer this service not only have the experience in complete supply chain solutions but they ideally also have a proven record in communicating openly and honestly with their clients.  


What are the Benefits of Supply Chain Network Optimization?

The key to the successful integration of a network optimization strategy is having a target or a goal in mind. Many businesses struggle so hard at trying to stay afloat. So much so that they simply don't have the time nor the patience to put forth an effort at looking into the future. Who could blame them? When you are so preoccupied with simply getting out of the hole, it is kind of hard to focus on the future.

Therefore, it's beneficial to reach out to a proven 3rd party logistics company. They can provide you with an independent review of your supply chain network, determine what goals are important to you, and establish a strategy to get you moving in the right direction; up! 

When you have a professional 3PL help optimize your supply chain network correctly, there are several benefits that can be achieved...


Reduce Waste

Wasting of resources is at the heart of inefficiency in any business. When a company is not using the right tools or procedures, it results in waste or loss of said resources. The goal of supply chain optimization is to discover areas where waste is prevalent. With these areas identified, the 3PL analyzes the root issues and recommends changes for fixing them.


Reduce the Cost of Supply Chain Operations

The modern supply chain involves multiple independent steps. Multiple people and procedures must work in conjunction in order to achieve supply chain success. Through supply chain optimization, a company is able to reduce the cost of operations dramatically. A decrease in overall shipping and supply chain costs results in better opportunities for increased profits, and who couldn't use that?


Improved Service and Flexibility

Supply chains operating at peak efficiency means improved service across the board. Whether it's happier employees, or customers receiving their products as promised, an efficient supply chain helps to achieve both goals. However, it also gives the shipper more flexibility with fine-tuning their supply chain operations to meet unexpected changes. 


Final Thoughts

The best way for any company to optimize its supply chain to full scalability is by hiring and working with a professional 3PL company.

And that is why you need Redwood Logistics working for you!

Chicago-based Redwood Logistics is a next generation, strategically integrated logistics provider that believes every company’s needs are unique. For more than 15 years, the company has been providing solutions for moving and managing freight and sharing its knowledge across North America. Redwood Logistics is focused on making its customers more successful in their end markets by applying talented and motivated people, proven processes and cutting-edge technologies to optimize their supply chain management efforts.