Update: 25/11/2022


As you might know, good supply chain management could raise shareholder value as it can control the heartbeat of the business – the basic flow of information and materials from all suppliers to clients. That said, it is not easy to accomplish that goal.

Conventional organizations sport a percentage of the supply chain of about 60 – 70 percent of inventory expense. It is advisable to adapt various visions to meet the current realities and enhance resilience as well as eliminate the risks from disruptions in the future.

The heads of supply chains are better to invest in fresh perspectives to enable businesses to adapt to global changes quickly.

The question is, how to turn supply chains into profit centers? We have compiled the top 6 tips that you can apply in an attempt to drive your supply chain into a profit center.

Top 6 Tips On How To Turn Supply Chains Into Profit Centers

Warehouse management system

A warehouse management system can allow businesses to monitor units down to the detail’s lowest level, leading to enhanced inventory accuracy and order fulfillment. This tech solution also boosts inventory management to become faster, more efficient, and easier.

A great WMS can also deliver an 18-to-24-month ROI with 5%-10% in annual benefits. The system is likely to enhance order fill rate while reducing labor and freight costs, cut work-in-procedure and finished-item inventory, and open up other distribution channels.

B2B e-commerce

Most businesses have around 20 percent visibility into supply chains, in comparison with the 70 - 90 percent required to handle main volatility where costs and revenue are quite a at risk.

B2B e-commerce assists organizations in meeting business objectives by enabling cross-selling and upselling, augmenting extra revenue, and finally enhancing the bottom line.

Dynamic pricing

Profit margins can be raised by 5% to 10% by utilizing dynamic pricing strategy models. This is attributable to assigning distinct, responsive prices to client segments moving along different demand curves, even for a similar product/service.

Supplier partnership

What drives supply-chain success is the relationship between humans to humans. Agile supply chains offer companies a sustainable competitive advantage. For firms to meet new demands, they need a strong supplier base built on trust and long-term relationships.

Companies should continue to conduct network changes and take responsibility for the entire supply chain. There are no technologies that can handle those things; only you - leaders of supply chains can make them happen.

Distinctive properties over necessities

Deliver a unique advantage by providing clients with extra value that competitors cannot do. Every successful business bases its strategic value percentage on unique capabilities.

Amazon, Apple, McDonald, and Starbucks are some good examples. Amazon's supply chain is technologically advanced while Apple's success comes from its strong supplier relationships.

It is worth mentioning that McDonald's employs a "win-win" strategy based on mutually-beneficial results for franchisees, suppliers, and employees.

Ultimately, Starbucks employs a vertically-integrated strategy in its supply chain that tracks each coffee cup from growers to brew offered to customers.

Wrapping Up

So now you know how to turn supply chains into profit centers. We hope our research is helpful for your inquiry.

And if you are seeking a smart warehouse management system, we are here to help you out. Meksmart WMS is an agile solution that can automate your warehouse operations in a seamless way.

Feel free to contact us for a free demo. Thank you for reading.

Admin Meksmart