What are the Supply Chain Solutions | How do they Impact Businesses? AAJ Supply Chain Management January 13, 2025

Supply Chain Management

What are the Supply Chain Solutions | How do they Impact Businesses?

Did you know that Companies with highly efficient supply chain solutions achieve 15% lower supply chain costs, which leads to higher profitability?

Supply chain solutions are the primary element of the business. They are an essential link between the production of goods and to the customer delivery. A business with a smooth and optimized supply chain can effectively increase customer satisfaction. Research says that the market size of global supply chain management was $15.85 billion in 2019. However, it is expected to reach $37.41 billion by 2027.

In this blog we will explore what are the supple chain solution, benefits and how to choose the best supply chain service provider in India.

What Are The Supply Chain Solutions?

supply chain solutions providers​

Supply chain solutions are strategies or tools that optimize the flow of goods in the entire supply chain process of a business.

Types Of Supply Chain Solutions

1. Logistics Solutions

It focuses on the transportation of goods from one place to another place. The 3PL Company usually focuses on route optimization software to deliver goods faster to customers. Again, the Company chooses the right transportation mode based on various factors like traffic, distance and many more.

2. Inventory Management

Inventory management is quite important in a business. Overstocking can cause the deterioration of perishable products. Again, stockout can have a negative impression on customers.

Nowadays, most supply chain companies are utilizing inventory management systems to keep track of products stored in the warehouse. It even helps to avoid problems like overstocking and out-of-stock issues.

3. Tech-enabled Logistics Solutions

Nowadays, most companies use advanced technology like IoT, data analytics and blockchain to increase product visibility. With the help of these technologies, companies can track live inventory, analyze demand, and optimize delivery routes. Advanced technology helps companies reduce errors and make their supply chains more efficient.

4. Sustainability Logistics Solutions

The global supply chain contributes to 60% of global carbon emissions, and that number pushes companies to adopt sustainable practices. More than 42% of supply chain solution businesses now prioritize green supply chains as part of their sustainability goals. They use electric vehicles or eco-friendly packaging to reduce waste and environmental carbon footprint.

5. Warehousing Solutions

Warehouse solutions are one of the major parts of supply chain solutions. It focuses on storing products of various shapes and sizes in the warehouse. Product storage can be long-term or short-term according to company demand. Top Warehousing companies also provide specific storage areas for perishable and fragile products.

6. Reverse Logistics Solutions

Customers may not like the received product and want to return it. The reverse logistics solutions handle returns, refunds, and if required, recycle the product. Reverse logistics is also known as returns management. It can be complex but crucial for ecommerce businesses. According to current statistics, e-commerce companies have a return rate of 20-30%. If they do not optimize their return, it will directly impact their profitability.

7. 3PL Solutions

Third Party Logistics solutions are the combined solution for those who are looking for warehousing services along with logistics. 3PL companies fulfill orders on behalf of a business. They do inventory management and ecommerce fulfillment. If a business struggles to store products or has difficulty delivering them, it should outsource all the supply chain activities to a third-party logistics provider.

Benefits Of Supply Chain Solutions

Benefits Of Supply Chain Solutions

1. Reduces cost

A business always looks forward to reducing logistics costs without compromising on quality supply chain service. There comes the importance of supply chain solutions. It helps a business owner to properly store products in the warehouse, manage inventory, transport products by choosing the most efficient route, and many more, which reduces the significant costs of the business.

2. Increase Customer Satisfaction

With the help of supply chain solutions, companies can smooth their logistics process. That helps their customer to track their orders and receive the right product. Timely product delivery can be possible only through smooth supply chain service. It promotes the brand and enhances customer satisfaction.

3. Increased Real-Time Visibility

Modern supply chain companies have advanced technology that helps them enhance the logistics process. Using blockchain technology, data analytics, and tracking software makes real-time visibility of the products possible. A business can constantly monitor its products and make necessary changes if required.

4. Expansion And Growth

Supply Chain companies have a vast warehousing and logistics network. They can deliver products even in remote areas. Advanced supply chain solutions allow a business to grow both Nationally and internationally. Whenever enterprises need to expand their business in new markets, supply chain companies will help them reach the customers.

When Businesses Need Supply Chain and Logistics Solutions?

Supply Chain and Logistics Solutions

1. Expansion Of Business

When a business starts to expand, it has to handle a large volume of goods. Handling such high volumes can be quite difficult. Hence, at such a time, supply chain and logistics solutions are required.

2. Geographic Expansion

When a business wants to enter a new market, it has to manage numerous things like sourcing, inventory management, warehousing and transportation. A robust supply chain can help a business owner to overcome these challenges. It’s best to take the help of a reliable supply chain provider who makes entering new markets easier.

3. Increase Customer Expectation

Most customers want their ordered product delivered within one to two days. If a business struggles to deliver products on time, it can take the help of a supply chain provider. They have a wide range of delivery networks that help them reach customers’ doorsteps within one or two days.

4. Seasonal Or Demand Fluctuation

The demand for the products can increase during a particular season or holiday, and it may be difficult for a business to maintain. In such cases, it can outsource the operations and logistics activities to a supply chain provider.

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Benefits Of Outsourcing Supply Chain Solutions Company

1. Access to Expertise And Industry Knowledge

A third-party supply chain provider has knowledge of the industry and years of experience in handling warehousing and logistic activities.

2. Improved Scalability And Flexibility

A business owner may not have a large warehouse to handle bulk goods during seasonal demands and hence may face problems in storing. However, outsourcing the supply chain solution will not cause storage problems. They have a large warehouse and provide scalable solutions. They can handle goods when your business expands in the future, or there is a sudden demand for goods during a particular season or holiday.

3. Enhanced Focus On Core Business Activities

You can outsource it to a third party if you struggle to maintain supply chain processes. It allows businesses to focus on core activities like product development or market exploration activities.

4. Advanced Technology Integration Without High Investments

A third-party supply chain provider has advanced technology like data analytics, IoT, blockchain, AI, and warehouse management systems. 87% of supply chain leaders plan to invest in digital solutions like AI, IoT, and blockchain by 2025 to improve transparency and efficiency.

5. Reduces Risks In Supply Chain Disruptions

There can be delays in delivering products for various reasons, like heavy traffic or maybe a pandemic. However, third-party supply chain providers usually have contingency plans to mitigate risks of transport delays or supplier failures.

6. Improved Compliance With International Trade Regulations

A third-party supply chain solution provider is usually updated with International rules and regulations, making global shipments easier.

7. Reduced Carbon Footprint Through Sustainable Logistics Practices

Nowadays, most outsourcing logistics companies are adopting sustainable practices. They are using electric vehicles to transport goods from one place to another, which reduces carbon footprints in the environment.

How To Choose The Right Supply Chain Service Provider In India?

Supply Chain Service Provider

Choosing the right supply chain solution provider is quite important for your business as it can help reduce warehousing costs and improve customer satisfaction. However, you need to keep a few things in mind when selecting your supply chain solution provider.

  1. Understand Your Business Needs – You should first identify your business needs, such as logistics requirements, warehousing, or last-mile delivery, and accordingly, you need to search for a supply chain provider.
  2. Industry Experience And Expertise – Ensure that the supply chain provider you choose should have many years of experience and expertise in handling your industry products. You can check track records, reviews, or portfolios to check their expertise.
  3. Review Scalability For Business Expansion – The supply chain provider you choose should scale operations when your business grows. For example, it should accommodate goods or products when your business will expand in the future.
  4. Wide Delivery Network – You should choose a provider with a vast delivery network, i.e., it should deliver products door to door delivery to rural, semi-urban, and urban areas.
  5. Fulfillment Center Locations To Near Your Consumer – The fulfillment centers of the provider should be closer to your customer because this reduces logistics costs and delivers products faster.
  6. Check Cost Effectiveness – Compare pricing models of various supply chain providers and then select one that provides good services at an affordable cost.
  7. Confirm Compliance And Certifications – The supply chain provider you choose must comply with National and International regulations.
  8. Customer Support – Ensure the provider provides 24/7 customer care assistance for shipment tracking and queries.
  9. Ratings And Reviews – Check ratings and reviews from existing clients to ensure the supply chain provider is reliable.
  10. Verify Flexibility In services – Choose a provider that offers customizable solutions for your business growth.

Conclusion

Supply chain solutions are the backbone of any business. An organization can optimize its supply chain solutions by adopting advanced technology, pursuing sustainability, and aligning with current trends. If a business struggles to optimize its own supply chain, it can hire a third-party supply chain provider.

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