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Supply Chain Management is the backbone of your delivery business: Here’s why and how it is managed!

By Tannu Sharma 8th July 2020

What is Supply Chain Management?

Supply Chain Management  is the management of the flow of goods and services, involving everything from movement and storage of raw materials and inventory to end-to-end order fulfillment.

Supply Chain Management for a Delivery Business

What’s the one thing essential for a delivery business’ profitability? How well the flow of goods and services is, including everything involved in transforming raw materials into final products.

Managing this flow is essentially supply chain management and, as you can imagine, plays a crucial role in the success of a delivery business.

Supply chain management involves streamlining a business’s supply activities in a bid to maximize customer value. This in turn allows businesses to gain a competitive advantage in the marketplace.

How Supply Chain Management Works?

For a supply chain management effort  to be successful, it needs to efficiently control and link the production, shipment and distribution of a product or service. Here are the five aspects of a supply chain that need to be coordinated:

  • Product development plan or strategy
  • The source of raw materials
  • Manufacturing
  • Delivery infrastructure
  • Return system

A supply chain manager is tasked with coordinating the logistics of these aspects, along with minimizing shortages and recommending productivity, quality and operations improvements.

Why is Supply Chain Management Important?

There are many reasons why supply chain management is considered the backbone of a delivery business. Here are some of the benefits of a robust supply chain management system:

  • A well developed supply chain management system enables businesses to better manage the demand and inventory of their products/services
  • With effective supply chain management, there’s better synergy between the different teams involved in the business, which leads to better quality products and increased profitability
  • Supply chain management helps companies cut excess costs and deliver products faster
  • With correct supply chain management activities, businesses can ensure their products are available at the correct location at the right time
  • Done in earnest, supply chain management also helps improve customer service, foster job creation, and improve the overall quality of life by ensuring timely delivery of essentials, such as food, water and medicine

How to Effectively Manage Supply Chain?

There are a lot of moving parts involved in supply chain management and to effectively bring these moving parts together, you need to to follow a few best practices.

  • If you’re in the delivery business, you need to maintain healthy relationships with your suppliers. Without their support, you’ll find it difficult to get your product or service to customers on time.
  • Instead of focusing on the price when choosing a supplier, look at the total cost of ownership of a product instead. By prioritizing long-term value over price, you’ll be able to take your business to the next level.
  • Another effective supply chain management strategy is to constantly review your inventory levels and ensure that they align with your business needs.
  • Invest in effective technology that allows you to efficiently streamline inventory, produce detailed reports, automated dispatch, real-time tracking and more.

If integrating all of this seems daunting, fret not. With Tookan, you can build your very own delivery management services with best-in-class features. Curious? Read on to know how Tookan can empower your delivery business with efficient supply chain management.

Supply Chain Advantage with Tookan

How streamlined and smooth a business workflow is has a major bearing on its operational efficiency. With Tookan’s  business-friendly features, including automated dispatch, advanced fleet tracking solution and a robust cash management system, you can boost your supply chain management efforts and take them to the next level. Some additional features that make Tookan the go-to choice for delivery business supply chain management are:

  • A centralized dispatch dashboard that allows for real-time tracking, customized notifications and alerts, automated logistics, and accurate data and analytics
  • Tookan equips your delivery agents with a service app that allows for optimized delivery routes, task notifications, automatic barcode generation and much more!
  • A powerful suite of extensions that include utility apps, customer experience insights, merchant onboarding and management, and easy customer integration
  • Advanced fleet tracking that helps reduce maintenance costs by sending you an alert when a vehicle in your fleet needs maintenance
  • Ability to monitor your fleet’s behaviour including idle vehicle times, rash driving and more

When powered by Tookan, your delivery business can enjoy real-time route optimization, end-to-end delivery tracking, geofencing and a host of other benefits. Get in touch  with us today to learn more about how we can help optimize your delivery business supply chain management.

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