Understanding Supply Chain Inefficiencies
In the fast-paced world of logistics, small inefficiencies can have a massive financial impact. Supply chain users often face hidden costs due to mistakes, excessive labor, inexperienced workers, and poor workflow management. These issues can cause delays, increase waste, and negatively affect overall performance.
At Acción Performance, we’ve seen firsthand how supply chain inefficiencies impact businesses. Fortunately, we specialize in providing solutions that save space, time, and money.
Common Causes of Supply Chain Inefficiencies
1. Poorly Managed Workflows
A disorganized workflow leads to delays, missed deadlines, and increased costs. When a third-party logistics (3PL) provider lacks structure, businesses suffer from inconsistent output and lost revenue.
2. Space Constraints and Bottlenecks
Warehouse space is at a premium, and inefficient use of storage can slow down operations. If your facility is overloaded, it can reduce efficiency and create unnecessary delays.
3. Equipment Failure
When critical equipment fails, manual intervention is often required, leading to skyrocketing labor costs. Without a backup plan, companies may experience significant disruptions in production.
4. Excessive or Unskilled Labor
Hiring too many workers or employing an inexperienced team can result in inefficiencies that cost more in the long run. Companies often pay more for inefficiencies rather than optimizing their workforce.
See below some examples of problems we have solved recently.
CPU + Outsourcing Solutions
Case Study: Overcoming Equipment Failure & Inefficient Workflows
The Problem:
- Equipment failure required 20,000 units to be hand-built daily.
- A previous 3PL partner had poorly managed workflows, leading to missed deadlines and increased costs.
- Limited space and inefficient processes resulted in waste and lost revenue.
The Acción Solution:
- We relocated the project to our facility, providing immediate relief and maintaining production.
- Our skilled insourced team saved 13% per unit through our fixed CPU model.
- By optimizing processes, we reduced the cost of returned goods by over 30% within six months.
Reverse Logistics Solutions
Case Study: Reducing Waste & Strengthening Workflows
The Problem:
- An e-commerce bedding company faced capacity constraints with their existing provider.
- Inefficiencies led to excessive waste, delays in restocking, and revenue losses.
The Acción Solution:
- We developed a custom Reverse Logistics plan that improved inventory management.
- By streamlining workflows, we reduced costs and increased efficiency across their supply chain.
- The tailored solution strengthened operations, minimizing delays and boosting profitability.
Take Control of Your Supply Chain Today
At Acción Performance, we specialize in identifying and eliminating supply chain inefficiencies to boost efficiency and profitability.
Get a Free Process Assessment
We are currently offering complimentary process assessments to help identify inefficiencies and optimize your workflow.
Click here to schedule a consultation today.