Your supply chain is an essential part of the service between you and your customers. Without a smooth and healthy operation, you could end up disappointing customers, losing money, and trailing behind competitors. Thankfully, a good supply chain health check can make a big difference.

Let’s start by assessing the health of your current supply chain.


It isn’t too difficult to perform a little health check on your supply chain with the right tools. There are lots of factors that you can measure, from positives in general performance and costs to negatives in wastage and feedback. You can set up a system of performance reports, datasheets, customers surveys and more to create your data. This then becomes a detailed report with findings that allow you to take further action. It may take time to learn the variables and best practices, but you can make improvements.

How do those test results compare to the competition?

You might look at your findings from your health reports and say that things don’t look too bad. But what are you comparing that performance to in order to reach that conclusion? Are you going on a rough idea of past performance or the efforts of your competitors? Take some time to look at the practices and results of those that are ahead of you in the game. Don’t use it as a reason to feel bad about your performance but as an incentive to improve. Look at their delivery times, prices, and more to see where they are beating you.

Are you aware of the 80/20 rule for your customers?

The customer is king, and 100% of those buying your goods are of value. However, you will probably find that 20% are more valuable than others because of their impact on your revenue. This is the group that spends big and often and that you truly cannot do without. The 80/20 rule states that 80% of the work you do is for the benefit of 20% of customers. At the same time, 20% of your work equates to 80% of your revenue. So, it is important to identify this 20% and run reports on this group to better understand their impact. You can also see what changes you can make that will give this group even more incentive to stick around and spend more.

Then you can look into some cost-cutting measures to trim the fat.

Along with this health check of dealing with the reports, checking the numbers, and paying more attention to that 20%, you may discover cost-cutting measures. The right approaches here should help you deal with any harmful waste and streamline your system. There are lots of options you can take. Some of the most common include turning to automation, especially in areas where remote systems could save time and money, and re-evaluating materials and packaging. The latter to ensure that there are fewer breakages or complaints about quality. Either way, it helps to go over every part of the chain carefully. Also, while some measures may seem costly in the short term, the long-term benefits make them worthwhile.


If this all sounds like a lot to handle then don’t worry, you can turn to TMS Online for guidance and effective services. We can help you handle these health checks with ease, create a reliable prognosis, and get your supply chain on the road to recovery.