5 Ways to Create a Frictionless Supply Chain

Amid a volatile business landscape, supply chain disruptions can occur every now and then. These disruptions can create a lot of friction in the supply chain flow and supplier relationships, especially for businesses that continue to operate with manual processes.

When businesses operate with traditional systems, these frictions can create a major disconnect between various stakeholders. They can also impact internal business functions.

How can a business identify and eliminate these friction points and ensure seamless supply chain operations?

The answer is integration.

And this integration must be done at many levels.

In a horizontal integration, individual functions such as planning, logistics and fulfilment combine to create a single, intertwined supply chain. The objective here is to eliminate functional silos and integrate individual functions.

Vertical integration integrates data along with individual functions. A robust data set will minimize the need for exception handling and enhance the overall functioning of the supply chain.

Finally, businesses need a three-dimensional integration to integrate the supply chain across a region.

What is a Frictionless Supply Chain?

A supply chain is frictionless when goods, services and information flow seamlessly from the point of origin to the point of consumption. The aim is to identify and eliminate unnecessary friction or process inefficiencies, improve speed and enhance customer satisfaction.

In a frictionless supply chain, all functions of the supply chain — procurement, production, warehousing, transport and distribution — work together seamlessly by streamlining processes and leveraging advanced technology.

Why Businesses Need a Frictionless Supply Chain

Resiliency, agility and dynamic – supply chain organizations have seen varied requirements in recent years. And now the business world is talking about a frictionless supply chain. So, what has driven the need for a frictionless supply chain?

Ever-increasing consumer expectations have made it imperative for businesses to create a frictionless supply chain. Users are now looking for companies that not just provide great customer service but an immersive consumer experience.

It is this evolving consumer mindset that has driven businesses to provide consumers with what they want, when they want and how they want it. And to deliver such an experience, they need a supply chain that is without any bottlenecks and makes products available at the right place at the right time.

Also read: Your Supply Chain Faces These 5 Threats in 2023 – Are You Prepared?

How to Create a Frictionless Supply Chain

Here are five ways businesses can create a frictionless supply chain.

1. Get real-time visibility

This is the first and foremost requirement for businesses today. Real-time visibility of inventory, warehouse, logistics and all supply chain operations is crucial to building a high-performing supply chain. It allows stakeholders to track and trace products, monitor inventory and proactively identify potential bottlenecks.

2. Enhance collaboration

Allow all stakeholders — suppliers, manufacturers, distributors, retailers and consumers — to work together more closely. Provide them with tools that can help them see events in real time and work in a collaborative environment. Advanced supply chain software can enable all stakeholders to work together on multiple supply chain processes such as demand forecasting and inventory management.

3. Automate processes

Continued dependence on manual processes can be a risky proposition for businesses in today’s fast-moving business landscape. Businesses must leverage technology and automate supply chain processes to move ahead quickly and refine processes. Technology can also provide useful insights for informed decision-making.

4. Stay ahead of demand

A key aspect of a frictionless supply chain is to understand customer demand and respond to it effectively. Businesses can leverage data and analytics to anticipate demand, manage inventory and align production and distribution activities.

5. Eliminate inefficiencies

To build a supply chain that is truly frictionless, businesses must eliminate unnecessary steps, delays and manual interventions. This can accelerate order fulfilment and boost overall efficiency.

The Path to Frictionless Supply Chains

Like integration at different levels, businesses need to leverage macro-, micro- and nanoservices to successfully build a frictionless supply chain.

Macroservices include monolithic applications that streamline and digitize supply chain operations. Microservices aim to deliver individual functions such as planning or order fulfilment. With the help of macro-, micro- and nanoservices, businesses can get the right tools needed to scale up or down. Strategic investment in technology is therefore vital for the efficient working of a frictionless supply chain.