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Improving your Efficiency and Productivity

Supply Chain Issues

Supply chain management is the control of all the activities and production flows that take place as the raw material is transformed into the end product. It ranges from the source of the raw product through to the final consumption or discarding of the end product.

As your business grows you need to find solutions to supply chain issues that may arise, to bring increases in efficiencies in production and costs, and overall output levels.

Typical points of a supply chain that can benefit from focussed attention are:

  • Production planning
  • Stock control systems
  • Freight arrangements
  • Lead times
  • Planned purchasing
  • Materials management
  • Distribution control
  • Customer service
  • Data systems
  • Communications chains.

Whether the reach of your supply chain is local or global, there are two fundamental strategies that can be implemented at every level:

  • Improve your planning processes. This means looking carefully at your past patterns of production to predict future flows, and moving to be better prepared at every point in your process. Forecasting brings focus to areas of potential increase and will assist you to make wise decisions.
  • Develop your communications systems. Faster, more accurate forms of written, verbal and technological contact will result in improved relationships between each supply chain point, increased information exchange, reduction of mistakes, and will have the most immediate and significant impact on your supply chain output.

For more information on this subject, go to the Managing your suppliers and customers business guide.

Freight

Most businesses in Tasmania have, at some point, experienced the challenges of doing trade on an island. With a large chunk of water separating us from mainland Australia and further global markets, we all know too well the costs of importing and exporting, in freight and time delays, which end up factored into every area of our economy.

As the size of your operations grows, so does the need for streamlined freight systems, to increase cost and time efficiencies.

Some questions worth asking, and working on for the future:

  • Can I plan production processes so that stockpiling of resources and end products reduces freight costs?
  • Is it time to consider closer or larger premises, or warehouse storage options?
  • Can my relationship with my suppliers be improved for future volume discounts?
  • What about spreading costs by joining with a network of businesses that face similar problems?
  • Do I value the local economy enough? Do I need to again look at all the local options, and why not link with them for future relationships and expansion opportunities?

Tasmanian Freight Equalisation Scheme (TFES)

The Australian Government operates a program that provides financial assistance to shippers of freight between Tasmanian and mainland Australia. If you operate a business that is based in Tasmania and have goods produced in Tasmania for use or sale on the mainland, this program can help with offsetting the freight costs of travel across Bass Strait.

For more information go to Tasmanian Freight Equalisation Scheme (TFES)