The Easy Ways to Reduce Supply Chain Costs

Getting more profit by reducing the cost of spending as little as possible is the goal of various existing companies. When this process can be realized, it is highly probable that the business will continue and make big profits.

 To begin with, companies can reduce supply chain costs where the focus is on reducing costs to the supply chain. Unfortunately, this is not easy to implement because companies need to understand the method first. So, how do you easily reduce supply chain costs? Check out the review below!

Applying ERP System

It is undeniable that technological developments play an important role in the manufacturing industry. One way to reduce costs in the supply chain is to implement Enterprise Resource Planning (ERP) software in which there is a feature of Supply Chain Management (SCM) to order material automatically to vendors.

Standardizing the Systems with ERP

In addition to implement an ERP system, companies are also required to standardize existing ERP systems. This way, employees will more easily improve accuracy, encourage team performance, minimize communication errors, and save work time.

Taking Advantage of Data from ERP

The ERP system used by manufacturing companies has a variety of data that can be utilized. Accurate and timely information can also be used to make decisions in order to reduce existing supply chain costs.

Using Real-Time Management

In addition, access to inventory is faster and easier. It is because in an ERP system there is an inventory feature that allows companies to get real-time visibility and based on the level of inventory of existing products.

Increasing Corporate Transparency

In order to reduce supply chain costs, companies need to increase company transparency. This is caused by a variety of problems that could arise in the supply chain such as waste, errors, and fraud. All of these things can be solved with software.

Completing Expenditure Data

Completeness of good financial data is evidence that a manufacturing company is well aware of financial stability, especially expenditure. Ensuring that expenditure is properly maintained will prevent the company from budget leakage.

Integrating ERP with Production Line

Not only that, the ERP system is able to properly integrate each existing production line. The line includes administration, finance, to the field of human resources. As a result, all existing lines can be traced to deficiencies before undesirable things happen.

Thus, there are number of easy ways to reduce the costs of existing production chains. In Indonesia, one of the industrial estates that applies a system of reducing supply chain costs is in Karawang New Industry City (KNIC), West Java. This area is also the right location for property investment in the industry with a variety of factories and warehouses with high technology.

There are several reasons why KNIC is the right choice for the manufacturing industry. Some of them are strategic locations near the toll road, Jabodetabek LRT, train stations, airports, and ports. These will lead to the delivery of goods everywhere.

KNIC itself is basically a world-class integrated industrial city so that the presence of world-class infrastructure is evident in this place. In addition, to support the performance of manufacturing companies, KNIC is also present to help accelerate regional economic growth and present a Multiplier Effect that is useful for socio-economic development in Karawang and surrounding areas.

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