Supply chain management can be a boon or a bane if sound cost-cutting strategies are not in place. Additionally, businesses need to adapt to the dynamic technological innovations in order to maintain their competitive edge. Let’s see what the numbers have to say.
As per Marketwatch, Amazon’s shipping costs witnessed a rise from $11.5 billion in 2015 to a staggering $21.7 billion in 2017. Additionally, according to an Eyefortransport survey, 24.7% of supply chain professionals claim that delivery costs are the biggest challenge for B2C e-commerce companies. Worse, studies by Zurich Insider suggest that around 63% of companies do not use any technology to monitor their supply chain performance.
But there’s good news as well. IDC predicts that half of all manufacturing supply chains will be capable of direct-to-consumer shipments and home delivery by 2020. Simply put, if you feel the need to address the rising consumer demands a for faster, more accurate, and seamless delivery experience, you’re not alone.
So let’s consider a few points on how you can leverage the best that supply chain cost reduction techniques have to offer, without creating a dent in your expenses or your overall brand strategy.
We have rounded up the five most effective strategies you could implement, namely:
1. Automate, Automate and Automate.


More and more companies are investing their time, effort, and money into enhancing automation at warehouses, and for a good reason. With the rising labor and land costs, any effort made towards cost reduction is a smart move. You’ll be surprised to know that labor costs constitute 65% of the majority of warehouse facilities’ operating budgets. So get on the automation bandwagon but before you do that, make sure to get a professional’s help to understand where you can integrate automation in your existing operations.
2. Bring Order to the “Ordering Process”

Streamlining your operations process comes with multiple benefits. The numbers don’t lie: When operations transform their inventory systems from paper-and-pencil to a more inclusive form of order processing, they enjoy the following advantages:
- A 25% gain in overall productivity
- A 10–20% gain in space use
- A15–30% more efficient use of stock.
- (Need we say more?)
3. Understand Your Customer’s Requirements: Inside Out
You must have noticed that customer buying patterns change from time to time. Depending on your product, the change may be triggered as per the season or timing of the day. Our suggestion? Start tracking your customer’s buying patterns so that you can use this invaluable data and tweak your supply process accordingly. A small step, a giant leap — you get the idea, right?
4. Analyze Performance Every Step of the Way

You could try all the tricks in the world, but if you do not measure your performance, you’re just moving in circles. The idea is simple: In order to know how much you’re saving, you first need to track your expenses. Take Shadowfax’ app that helps map demand and supply ensuring on-time deliveries and real-time happiness! In short, analyzing your performance also paves the way for future investments and helps understand where your brand is headed and whether it’s achieving its goals — a prerequisite for any company today.
5. Go Holistic, Not Ballistic!
Supply chain management, in essence, is a process and needs to be dealt with keeping this factor in mind. If the individual parts don’t work, the system is bound to fail. So the primary thing that needs to be done is to address key questions such as: Which supply or demand areas need an intervention? What elements from the supply chain process can be removed altogether? What factors can enhance overall productivity? If you think holistic, you’ll reap the benefits in no time.
Effective Supply Chain Management: No Longer in Short Supply

The supply chain process — if streamlined — can be the “business edge” you’ve been aspiring for. Add to the mix, the above mentioned cost-cutting solutions, and you’ve got a clear winner! We, at Shadowfax, adhere to the same uncompromising standards and ensure lightning-fast delivery across industries, countries, and consumer needs of any kind. For further queries, please contact us at hello@shadowfax.in and we’ll get in touch right away.