Adopting business systems that reduce friction and increase efficiency
Lean Manufacturing is emerging as an important solution to address certain friction points in the supply chain. In this system, transparency between manufacturers, suppliers, and buyers is fundamental. Detailed service contracts spell out exactly what is required of each party. These plans then act as a roadmap to streamline the supply chain from beginning to end, while identifying any possible bumps in the road. Real-time information exchange at every step in the chain allows for more accurate forecasting of supply, demand, and delivery.
In today’s globally connected world, businesses of all sizes have access to the tools and processes that can make them more efficient. Digitization of your data is a great first step to streamlining your internal processes and becoming more transparent with the organizations you deal with.
For example, converting cumbersome paper-based invoicing to an electronic, data-driven system can reduce much of the friction associated with manually creating monthly or quarterly reports. Having your payables and receivables tracked in a database can also allow you to seamlessly identify patterns in your cash flow that you might otherwise miss, contributing to leaner processes in the future.