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An Overview of Supply Chain Management

In business, supply chain management, which includes the transportation and storage of goods, and the distribution and transportation of finished goods, are the sequence and movement of raw resources, work-in-process, and finished products, from point of origination to point of destination. It is the collective management of resources in a network to achieve certain targets and results. In supply chain management, there are three stages: planning, sourcing, and production. The planning stage identifies the sources of supply; work that needs to be done; and the most appropriate routes for transporting the resources. Also, this stage defines the methods by which the resources will be obtained, namely, buying, hiring, borrowing, or leasing in Supply Chain Management.

The next stage is logistics

The next stage is logistics; this stage focuses on the entire delivery process including warehousing, receiving, handling, and distribution. For retail companies, logistics involves warehouse inventory management and scheduling. For distribution companies, logistics involves warehousing, shipping, and the provision of credit. There are also other supply chain management services such as trucking, consumer packaged goods, medical device logistics, IT logistics, and energy logistics.

supply chain management

With supply chain management services

With supply chain management services, retailers can improve their overall profit margins by decreasing the cost of the merchandise and improving customer service. For example, a manufacturer that ships its finished goods to a wholesaler that then ships the goods to a retailer completes the supply chain. The retailer gets the goods at a good price, ships them to a wholesaler who ships the goods to a distribution company that delivers the goods to the end-users. Thus, supply chain management allows the retailer to reduce costs.

With the recent advancements in technology

With the recent advancements in technology, there have been considerable changes in supply chains. Some industries such as the airline industry have implemented automation to improve efficiency. In the retail industry, supply chain management software has improved tremendously. Nowadays, business leaders can analyse data from all business processes to make better-informed decisions for their organizations. Business leaders can create a flow chart of each process that will show the progress of each action in the supply chain. They can see the relationships between products and activities such as production, sales, marketing, finance, and customer service.

There are four major processes involve in supply chain management

There are four major processes involve in supply chain management. These include planning, order management, inventory management, and delivery. The planning process is usually consider the hardest of the four. This is because it requires the longest sequence of actions, but the outcome will have the greatest effect on the organization’s bottom line. During the planning phase, different tasks are plan to take care of each of the process elements.

The first process in supply chain management is planning

The first process in supply chain management is planning. In this stage, strategic plans are made so that logistics will be streamline. Organizational roles and responsibilities are analyze so that strategic decisions about the supply chain are made. This might involve getting feedback from suppliers about the quality of finished goods that they deliver.

Once strategic plans are develop

Once strategic plans are develop, logistical activities are organize. The next process in supply chain management deals with ordering. This may include placing orders with suppliers or wholesalers, or sourcing from foreign countries. Once orders have been place, inventory is updat and suppliers are update about the status of their shipments.

The weight of your cargo is important

The weight of your cargo is important, especially when you consider the cost of the materials as well as the cost of the actual transportation of the items. Therefore, you need to ensure that your cargo is securely secure. Fortunately, there are many different ways in which you can secure your cargo. Some of these include tarpaulins, welding, and spikes.

supply chain management

Tarpaulins and spike packs can usually be secure to the rear axles of flatb trucks via an extensive system of fasteners. Welding is one way in which you can secure the frame of your vehicle. Especially if you have a long cargo area to carry. Grades and tarps can also be use on the back of the truck. These can secure all or part of your load. Tarps with sharp edges are not good for shipping purposes, because they can easily cut through the cargo as well as the sides of your truck.

Also involves receiving raw materials at the right time. This may include sourcing raw materials when they are need or waiting for them to be deliver after they are purchase. When raw materials are receive, they are use to manufacture finish goods. Finally, delivery of these goods to the customer occurs at the right time and place, which ensures a high level of efficiency in packaging logistics.

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