Top Tips for Consolidating your Supply Chain | TNT Direct

Top Tips for Consolidating your Supply Chain


A business’ supply chain can be one of the most important parts of its operations, as this article from MSG explains. This piece details how supply chains are the ‘backbone’ of many firms, and also stresses the importance of effective supply chain management by explaining that ‘any glitch in a product not being available at the right time can result in the drop in customer interest and demand, which can be disastrous.

Naturally, this is a situation a business would want to avoid, and as such, having a streamlined and effective supply chain can be a big part of this – and one such approach to take would be to consolidate your supply and logistical operations.

With that in mind, here we’ve detailed a few top tips you could implement into your supply chain to consolidate it and help improve its performance.


Why Consolidate your Supply Chain?

Before we reveal our top tips, here’s a few more reasons why a consolidated supply chain can be beneficial for a business:

  • You can reduce your overall processing costs, as simply put, with fewer services or resources being used, your business won’t need to spend as much.
  • Business risk can be lower if you reduce the amount of external resources you might currently rely on.
  • There are also opportunities to save money on aspects like purchasing costs, as a lower number of suppliers can give you more power and control over what you need to buy.

In addition to these points, you can also find that with a consolidated and more-effective supply chain in place, you and your team members could be more productive, as you’d subsequently have more time and flexibility to work on other jobs and tasks.


Top Tips

So, to help achieve such benefits with your business, here are our top tips and approaches for consolidating a supply chain:

Tip One: Outsource your Services

One effective means of consolidating a supply chain is to outsource your whole setup to one external source. If you were to do this, it would be wise to choose a dependable and expert supply and delivery company who you can trust to effectively manage all aspects of your supply chain successfully.

Tip Two: Improve Warehouse Organisation

Streamlining the way your warehouse is run and consolidating your main distribution to one location can make your supply chain more effective. This is because you’ll be able to manage orders, returns and shipping much easier.

Tip Three: Limit your Services

Another way to consolidate your supply chain is to offer a smaller number of specific services, rather than trying to manage a wider range of options at once. This could range from purely having specific business parcel delivery services, to only focussing on domestic or international shipping. By offering a specialism in one area you could promote this as a unique selling point for your company.

Tip Four: Move to Fewer Suppliers

In a similar vein, you could also simply reduce the number of suppliers you work with as this can be a quick means of reducing purchasing and process costs – as previously mentioned above.

Tip Five: Create a Centralised Hub

To build on tip two, you could also consolidate all your supply and logistics services to one distribution hub and centralise all your operations into one. While this doesn’t necessarily give you access to as many resources, you again get more control over your supply chain and could realise a few other advantages. You can see several examples of such benefits in this post from Business Partner Magazine.


Final Thoughts

To return to the point alluded to in our introduction, actively consolidating as part of your supply chain management can help you to avoid potential issues later down the line. More importantly though, it can be a great way for your business to improve, save money, offer a better service to your customers and even give you more time focus on improving other important areas.

So, make the most of our suggested top tips and see for yourself what a consolidated supply chain could do for your business.



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