Order tracking and visibility are crucial for effective supplier communication in manufacturing. They help you monitor the status, location, and quality of your orders, as well as prevent delays, errors, and disputes. In this article, you will learn how to improve your supplier communication with order tracking by following these six steps:
The first step is to choose a system that suits your needs and preferences for order tracking. You can use a manual system, such as spreadsheets, emails, or phone calls, or an automated system, such as software, apps, or web portals. The advantages of an automated system are that it can reduce human errors, save time and resources, and provide real-time updates. However, you should also consider the cost, compatibility, and security of the system, as well as the training and support required.
In my journey, I used a system that measured the volume of the tanks. This system was visible to both us and the supplier. This way, everyone was on the same page regarding replenishments.
The second step is to define clear standards for order tracking that both you and your suppliers can follow. These standards should include the information, format, frequency, and method of order tracking. For example, you might specify what details you need to track, such as order number, quantity, date, location, and status. You might also decide how often you want to receive updates, whether daily, weekly, or monthly, and how you want to receive them, whether by email, phone, or online.
The standard I established with suppliers was as follows: Monthly orders, supplier validation, and weekly reports for inventory tracking. This way, everyone shares the same information.
The third step is to communicate your order tracking expectations to your suppliers clearly and consistently. You should explain why order tracking is important, what benefits it can bring, and what consequences it can have if not done properly. You should also provide feedback and guidance on how to improve order tracking performance and quality. You can use various communication channels, such as meetings, newsletters, or webinars, to convey your message and answer any questions or concerns.
The fourth step is to collaborate with your suppliers on order tracking and make it a joint responsibility. You should involve your suppliers in the planning, execution, and evaluation of order tracking activities and processes. You should also share your goals, challenges, and best practices with them and seek their input and suggestions. By collaborating with your suppliers, you can build trust, transparency, and alignment, as well as identify and resolve any issues or risks.
One of the practices I implemented with my suppliers during my journey is to share, on the first business day of the month, my volume expectations for that period. On the same day, I would also share the orders and the day I desired the carrier to collect them. The supplier had in hand the volume they would sell to my company for the month, and I maintained a healthy inventory without excess. Continuous daily monitoring was in place. In case of any deviations in consumption, I would either expedite or delay the shipment in coordination with the supplier.
The fifth step is to monitor and measure your order tracking results and compare them with your expectations and standards. You should use relevant metrics and indicators, such as order accuracy, timeliness, completeness, and quality, to evaluate your order tracking performance and efficiency. You should also use data and analytics tools, such as dashboards, reports, or charts, to visualize and analyze your order tracking information and trends.
The sixth and final step is to review and improve your order tracking practices regularly and continuously. You should solicit and provide feedback on your order tracking experience and satisfaction with your suppliers and customers. You should also identify and implement any changes or improvements that can enhance your order tracking capabilities and outcomes. You should also monitor and adapt to any changes in your business environment, such as customer demand, market conditions, or supplier availability.