The supply Chain is called the set of intermediaries and suppliers that intervene in the journey, from the producer to the final consumer. For each product or product line, there may be a different list of actors and companies.
So, with each new product of this type, you have to create everything anew, as well as hire a manager to manage the process.
The range of activities may include not only moving parts, but also warehousing, moving raw materials, and other tasks related to unfinished production. This can also include inventory.
ADVANTAGES OF THIS APPROACH
Management plays a very important role, especially in growing organizations, where profits depend on the effectiveness of this process.
The main advantages of circulation are:
Develops relationships and service for customers, makes them better.
Transportation and storage costs are reduced.
Productivity is higher and business functions are optimized.
Reduce direct, indirect, and fixed costs.
Improve merchandise delivery mechanisms with the least possible delay.
Organize the delivery of the necessary volume at the time and place required
It shows companies how to adapt to the continuous ups and downs of national economies, the ever-increasing expectations of customers, and the more demanding requirements derived from globalization.
This is part of a long list of positives. Supply chain management in logistics is an indispensable process without which it will be impossible to deliver on time, organize large shipments, and reduce costs. An organization’s ranking will never improve if it is consistently associated with being unserious, unpunctual, and failing to deliver on promises on time. And if logistics lines are not established, the raw materials will not arrive on time and the product will not be manufactured. That is why it is so important to put everything in order and create a working mechanism.
SUPPLY CHAIN OBJECTIVES
Any company tries to adjust supply and demand, maintain balance and move towards the most efficient use of resources.
There are several main goals that any business strives to achieve:
The best way to satisfy the customer is to exceed their expectations, do it regularly.
Collaborate with partners at different levels to maximize performance.
Establish criteria for all repetitive processes and stick to them.
Eliminate duplication of operations, saving the company time and money.
Reduce costs, especially when the organization seeks to preserve capital and there is little uncertainty in the economy.
Create inexpensive versions of products that appeal to users, but remember to create value for customers.
Check that the increasing expectations of customers are always satisfied by some new or personalized products and that they are satisfied with the current state of things by continuously increasing quality
Monitor the offers in the company store.
It is a series of different activities that have one main goal: to increase profits and lead to financial success. Often these activities are also aimed at entering new markets, increasing sales, and improving differentiation. You need to increase the competitive advantage and shareholder value of the entire company.
The supply chain is the grouping of intermediaries and suppliers that intervene in the process so that a product reaches the final consumer. This process has several benefits for companies, as its function is essential for the delivery of products. In addition, it favors the fulfillment of the basic goals that the organization needs to achieve, such as obtaining profits.
