The Importance of Supply Chain Timeliness in the Grocery IndustryBy: Joe Mandato | September 13, 2019
If you’re a grocery company, you understand how critical time is when it comes to the transport and delivery of your goods. A late shipment isn’t just late, it’s an unhappy customer who may just give one of your competitors a try. That’s why it’s so crucial to stay on top of your supply chain processes to meet your consumers’ needs and deliver a satisfactory product.
Customer relationship management, customer service management, order fulfillment, procurement, and returns are just some of the processes in your food business that are time sensitive. Those processes are used to transfer an extensive range of documents that ultimately impact the overall efficiency of your operation.
Here are three reasons why ensuring timeliness of those supply chain processes are essential to the health of your business and will help you maintain a competitive advantage:
1. Reduced Chargebacks & Compliance Issues
We don’t need to remind you that timely shipments are important when it comes to food (due to most products’ limited shelf life). However, when communicating with your trading partners, being “late” on sent and received documents can lead to non-compliance with your suppliers—and the consequences are two-fold.
Let’s say you have an outbound advance ship notice (ASN) that has yet to be sent. In some cases, you would be hit with a fee if your trading partner does not receive it within 24 hours. So not only will a late shipment end up costing your business money, in all likelihood, the goods will be spoiled as well.
2. Faster Business Cycles
Transactions that are completed on-time with your trading partners will ultimately speed up your business cycles. The key to achieving this is having a system in place that can automate those processes and cut down the time it takes for your IT and business teams to answer EDI-related questions.
Having the ability to be timely with those transactions will help shorten order-to-cash cycles and as a result improve relationships with your trading partners and customers and speed up the dispute resolution process.
3. A More Efficient Operation
When you stay on-time with your supply chain processes it has a cumulative effect on your entire operation. Customers are happy because their food is fresh and employees don’t have to waste time scouring through files to find the information they need. It also helps your business avoid costly fees that can set you back.
A smoother operation means the data flowing through your system is accurate and up-to-date. In the end, that means a dramatic decrease in lost orders and product returns—and a healthier bottom line.
Did you know there’s a simple way to automate many of those transactions and streamline your supply chain processes to ensure you never miss a deadline and remain on-time, and on schedule? Check out Syncrofy and see what it can do for your business today.
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