The Importance of Supply Chain Management Checklists
National and international manufacturing supply chains require different entities to work together across industries. Properly managing each entity in a supply chain is a critical step in enabling sustainable, ongoing, and cost-effective production.
In some cases, partial products travel enormous distances. Nevertheless, companies produce faster and more cost-effectively in a network than when they are left to their own devices. However, this also creates dependencies. This makes close cooperation and an intensive exchange of information all the more important.
A supply chain management checklists enables company-wide, process-oriented planning and control of the entire value chain. An important point here, are the short product life cycles and the high customer expectations. In addition, the relationships with suppliers are considered intensively in order to efficiently design and control goods deliveries, cash flows and information flows.
Thus, many supply chain management tasks arise that involve a high flow of information and data. SMC checklists are designed to help employees in all units of supply chains to collect and share information and data in a structured way. Checklists specifically designed for the task at hand help companies achieve the long-term goals in supply change management:
- Reduce inventories along the value chain
- Reduce inventory costs
- Secure just-in-time supply
- Increase delivery reliability
- Shorten lead times
- Shorten cash-to-cash cycles
This article addresses the following topics
1. The difference between logistic and supply chain management
2. Tips for a better supply chain management checklist
3. A digital tool for supply chain management checklists
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The Difference Between Logistics and Supply Chain Management
Logistics and supply chain management are very similar in many ways, so many companies find it difficult to clearly highlight the differences. Basically, it can be said: Logistics only deals with logistical processes of the value chain, while supply chain management furthermore pays attention to cost minimization and optimization of processes.
Modern supply chain management places a special focus on transportation and warehousing within the company. The structuring and coordination of independently acting entrepreneurial units in a value creation system are included in the analysis. SMC functions as a company-wide view of all business processes and thus links all areas of business administration (purchasing, production, sales, marketing, etc.). Since it focuses on the strategic aspects of the functional areas, the tactical decisions of the value chain are left to the other participants.
At first glance, the difference between logistics and supply chain management seems small. In practice, however, it becomes apparent that one does not work without the other. Both mesh-like cogs and take care of flows of goods, money, and information that work, improve continuously and satisfy customers. Logistics and SCM together aim at increasing customer value (effectiveness) and a system-wide improvement in the cost-benefit ratio (efficiency)
Tips for Better Supply Chain Management Checklist
The process flow in supply chain management is a complex structure that should always be reviewed and adjusted. The following tips will support you in the revision phase of your supply chain management strategies.
- Define the ACTUAL situation - First, you should analyze and break down the current supply chain process in detail. Analyze the entire value chain as well as any processes and structures, such as material flow and logistics flow, as well as the individual players.
- Detect approaches to optimization - Based on the ACTUAL state, you should then determine which aspects are in need of improvement. Through which changes can long-term optimizations be obtained? Consider immediate measures, which bring a potential for change.
- Implementation & Control - The defined measures should be introduced and documented step by step, depending on the priority. It is important to keep track of the effectiveness of the changes and ensure an orderly process through regular checks. Set up teams to regulate the change process and assess the progress of specific improvements.
A Digital Tool for Supply Chain Management Checklists
Lumiform, a mobile and intuitive app for quality and safety audits and inspections, can be used by quality and safety managers in the supply chain to promote continuous quality improvement and reinforce a safer work environment.
Integrate digital checklists into your quality and safety audits to collect relevant data and information on the spot. Initiate corrective actions immediately via the app when necessary. In this way, you proactively uncover opportunities for improvement or non-compliance with regulatory requirements and industry standards.
As a Supply Change Manager, you will benefit from the following advantages over paper-based audit and inspection methods on a daily basis with Lumiform:
- The flexible form builder helps you turn any custom paper list into digital checklists in minutes
- Lumiform offers a lot of pre-designed templates to help you get started digitally quickly and confidently.
- All audit results are automatically bundled into one report and can be sent to entities within the supply chain.
- Extensive analytics help you uncover inefficient areas in the value chain faster and thus continuously improve processes.
- Save time and minimize the cost of monitoring and measuring quality and safety improvement.
