How do I Know if my Supply Chain is Efficient?

Supply chain management is controlling the flow of your goods and services. How do your products get from point A to point B? Sounds simple, but it is often overlooked or inefficiently implemented. A supply chain encompasses all the steps a product or service needs to travel before finally being delivered into the hands of your customer. 

A powerful supply chain is key to a successful and resilient business. By having the most efficient supply chain, you are optimizing your costs, lessening your costs, maximizing time, increasing negotiating power, and more. 

Staying on top of your supply chain is crucial to your success and having a sturdy supply chain in place will also help it survive up against unpredictable, disruptive events like the pandemic. Envoy has created a list of 5 aspects to consider about your supply chain to help determine its efficiency. 


It is important to identify the level of data you are retrieving from your current supply chain processes. Data is the best way to gain insight into the functionality and performance levels of your supply chain. It can help you determine if there are any inefficiencies, and where they are hiding.

For example, inventory data and production volumes are some key analytics you may want to be able to view in real-time. These stats could help you understand if supply and demand numbers are aligned: if you are meeting customer demand, or storing too much inventory.

Learn about more logistics analytics to consider here


It is hard to determine efficiency if there are blind spots. You can’t determine problem areas (or the best areas) in delivering your goods unless you can track every part of the process accurately. 

If there are a lot of gaps or unsure areas in your supply chain management data, then it becomes more likely that your supply chain is inefficient. It is important to ensure transparency throughout the supply chain process. Real-time visibility helps determine how your products flow from beginning to end and helps you identify if there are any areas that require and/or can be improved. 


Take the time to pinpoint any inconsistencies that may lay within your current supply chain. Some questions you may want to begin with could include: 

Are your suppliers dependable? 

While cost is often the primary factor considered when selecting suppliers, you should also prioritize reliability. If the very beginning of your supply chain is unreliable or unresponsive to changes in demand, it will impact your ability to produce your product and scale up manufacturing in the future. 

Does your inventory accurately represent your customer demand? 

Depending on your business, your ideal level of inventory may fluctuate depending on factors such as seasonality, product expiry, and product launches. If you find that your inventory levels repeatedly have inconsistencies and fail to meet customer demand, then you will want to consider making changes in your supply chain. These changes could include your supply chain model, your current logistics partner(s), or your warehousing solution. 

Am I using the right supply chain model for my business? 

This question encompasses many smaller ones. Selecting the right supply chain model for your business can be overwhelming and challenging. Sometimes there isn’t a perfect model, and a variation, or combination of several, would work best for you. You can learn more about supply chain models here or consult with an expert.  

Continuous improvement 

While the first step is finding a secure and appropriate supply chain, your supply chain will require constant maintenance, innovation, and improvement. With new logistics trends, technology, external factors, business volatility, and more, your supply chain needs to stay up to date. 

There is always room to increase efficiency!

Technological tools 

Arguably, using and leveraging technological tools should be one of the highest priority items when seeking to increase your supply chain efficiency. Technological tools can be implemented to help with all efficiency tips suggested above. 

The right technology can help pull the most accurate data from your current supply chain and help detect any errors or problem areas. If you don’t have one already, you may want to consider adopting a Warehouse Management System. 

The emergence of new logistics technologies has also made increased transparency possible. Implementing technology that allows for virtual warehousing and real-time data increases businesses data visibility and decreases time spent physically in the warehouse. 

Learn about more logistics technology here

Get started with Envoy Networks as your trusted 3PL provider! 

Third-party logistics providers such as Envoy Networks can help identify how your current supply chain is performing and how you can increase your efficiency. Save the stress of constantly improving and managing your own supply chain by partnering with an experienced and trustworthy 3PL provider. 

Talk to an Envoy logistics expert today to learn how we can best suit your business needs. 

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