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Why Industrial Supply Chain Management is Important for Manufacturing and Petrochemical Companies

Supply chain management services are critical for increasing operational efficiency and growing profits for industrial companies. Often times, organizations don't have the experience or resources internally to make a dramatic impact to their bottom line. That's why companies like the Tri State Industrial Alliance exist—to provide logistics and operations management services to petrochemical companies in the Gulf region.


In this article we're going to outline:



The Tri State Industrial Alliance is an end-to-end supply chain management and logistics company, using proven systems to cut operating costs and boost profits. If you're looking for an outsourced supply chain and operations logistics company, contact the Tri State Industrial Alliance today.


Supply Chain Management Services from the Tri State Industrial Alliance

Why Supply Chain Management Services are Important for Industrial Companies

Supply chain management (SCM) services are important for manufacturing and petrochemical organizations because these companies can increase their profits by seeking efficiencies within their supply chain. By optimizing your existing systems, you can increase the output without increasing the input, improving productivity and increasing the chances of survival long term. SCM also increases the competitiveness of a company, and improves customer satisfaction and retention. Supply chain management plays an integral part of a company's success. Improving your supply chains and logistics also allows petrochemical and industrial manufacturing companies to out-pace their competition in production, at a lower end cost.



Logistics and Supply Chain Management from Tri State Industrial Alliance

How to Improve Profits Through Supply Chain Management and Logistics

Supply chain optimization leads people to think about enhancing delivery, efficiency, and customer service. The most overlooked benefit to supply chain management and logistics, is hidden savings. Many manufacturing and petrochemical companies don't see the correlation between logistics and financial statements, which leads to a lot of money left on the table as a result.


Here are 5 ways you can improve your operational efficiency through outsourced supply chain management services from Tri State Industrial Alliance:


1. Inventory Logistics

Many companies want to keep their inventory low, with the aim of keeping warehousing and storage costs at a minimum. However, let's say a critical part is delivered half an hour late. That could make the entire supply chain screech to a halt. This will lead to increased costs in the form of lost productivity. Focusing entirely on keeping low inventory isn't a good long-term strategy for supply chain management. By hiring the Tri State Industrial Alliance for your outsourced supply chain management and logistics services, we will find. the optimal balance between inventory and demand.


2. Cash Flow Management

You can uncover a ton of insight from supply agreements and invoices with suppliers.

There are factors to consider when analyzing your cash flow.


  • How can you avoid purchasing too much in the future?

  • How can you avoid costs for order corrections?

  • How can you optimize the supplier payment behaviors?


These processes must be analyzed and optimized accordingly when looking at your supply chain and logistics.


3. Control Operating Expenses

As you can learn a lot from your cash flow, you can also learn a lot from improving your operations management. Recurring incorrect orders can indicate a point in the process that needs fixed to avoid mistakes in the future and boost profits.


4. Control Customer Cash

When an industrial manufacturing and petrochemical company is seeking to improve profitability, look to customer relationships and order records. Quantifying order processing and optimizing accounts receivable is critical. By continually optimizing the logistics process and determining if the right product is in the right place at the right time, supply chain management can be further optimized.


One thing to consider though; settling payments with clients can reduce costs. Reducing the time between ordering and payment, as well as solving late payments and missing payments can cut costs and increase profits.


If an industrial manufacturing company wants to see substantial improvements in their supply chain and logistics, it's important to hire operations management and logistics experts such as the Tri State Industrial Alliance.



Supply Chain Management & Logistics Services From Tri State Industrial Alliance

How to Find the Best Outsourced Supply Chain and Logistics Service For Your Needs

When looking for a supply chain and logistics company, there are a few things industrial manufacturing and petrochemical companies some think about:


  • Is their network and supply chain robust enough to handle my project?

  • Do they have the resources necessary to execute?

  • Do they have experience in my industry?


Manufacturing and petrochemical companies should ask themselves these questions to avoid any errors and avoidable costs in the future. Hiring a firm experienced in your niche's supply chain and logistics systems will increase productivity and cut costs.


In Closing:

It's easy to see that with proper supply chain management and logistics services, industrial manufacturing and petrochemical companies can see quick wins in terms of savings and increased profits. Unfortunately, many manufacturing and petrochemical companies are missing out on hidden opportunities and leaving money on the table. If manufacturing companies and petrochemical organizations want to see real savings, they will have to consult with an industrial supply chain and logistics company to calculate the impact of supply chain optimization on working capital. Only then will they be able to determine the advantages supply chain optimization services will have on their organization.



If you're an industrial manufacturing or petrochemical organization who wants to see increased profits through a more efficient supply chain and logistics system, contact the Tri State Industrial Alliance now by clicking here.

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