What is Supply Chain Efficiency

The supply chain has been a hot-button issue for the past few years thanks to the global pandemic. With shortages, shutdowns, and other delays affecting the global supply chain, it is safe to say that supply chain efficiency should be at top of mind for businesses.

So, what does an efficient supply chain look like? In this article, we will discuss what supply chain efficiency is, why it is important, and how to achieve maximum efficiency throughout your supply chain.

Understanding Efficient Supply Chains

Ultimately, an efficient supply chain utilizes its resources (including financial, human, technological, and physical resources) in the best possible way to deliver upon business goals in a timely manner. The goal of an efficient supply chain is to minimize logistical costs and maximize profits. This is true for everything from businesses that sell testosterone to businesses that sell frying pans.

Why Efficiency Matters

An efficient supply chain is also an effective one, in which customers receive accurate orders on time. If the pandemic has shown us anything it is that customers like to order things and they hate to be kept waiting. In order to meet and exceed your customers’ demands and expectations, your supply chain needs to run as smoothly as possible. In addition to keeping your customers happy, an efficient supply chain also reduces operational costs.

How to Achieve an Efficient Supply Chain

Efficiency should be something all businesses strive for within their supply chains. Here are a few major ways to achieve supply chain efficiency for your business.

Integrate Technology

Integrating technology to monitor inventory levels and suppliers greatly improve efficiency in the supply chain. Online portals help your business gain valuable insights into inventory levels and help scale your inventory up or down depending on the demands of your customers. This is especially useful during periods of supply chain disruption where unforeseen circumstances can slow down supply chains that are unprepared.

Supplier management technology is also beneficial for an efficient supply chain. View, consolidate, and manage your suppliers and their performance all from one place with the right online portal. This saves time, energy, and money, increasing overall efficiency.

Think Sustainably

Sustainability and efficiency often go hand in hand when it comes to the supply chain. Introducing sustainable practices into your supply chain reduce waste which saves money. Working with other suppliers and manufacturers who also value sustainability is an added bonus. Plus, incorporating sustainable packaging and packaging design reduces the amount of packaging needed to deliver similar results. Overall, sustainability is a huge factor in increasing profits while reducing logistical costs.

Consider Warehouse Space

Oftentimes, the key to efficiency is a well-designed warehouse space. Whether your business has its own warehousing facilities or utilizes the services of a third-party provider, having an efficient workspace can increase supply chain efficiency immensely.

To promote a more efficient supply chain process, consider warehouse spaces that are compact enough to reduce the amount of time and distance products need to travel throughout the facility. This cuts down on errors and saves you money.


While the supply chain is certainly still facing disruptions there are actions that businesses can take to better prepare themselves for unforeseen circumstances. An efficient supply chain improves order fulfillment so that businesses can better meet the needs of their customers. Consider integrating technology, utilizing more sustainable practices, and pay attention to your warehousing spaces to improve your supply chain efficiency.


Dee is a well-respected business journalist with a deep understanding of global financial markets and a talent for uncovering the stories behind the numbers. With over 20 years of experience covering the business beat, Dee is known for his in-depth reporting and analysis of industry trends, as well as his ability to make complex financial concepts understandable to a wide audience.