The main objective of a company of a company is to satisfy the needs of its customers. better than its competitors do. In the industry, «better» often equates to «more efficient». To achieve this, an essential element to work on, is the
For to efficiently scale up production, it is essential to have a good understanding of how the supply chain works (also known by its English term «supply chain«) and what can be done to optimize it.
What is the supply chain?
refers to all the
that occur from sourcing
of raw materials
delivery of the product
finished product to the customer end. It contains all the operations that make this process possible, such as manufacturing or distribution.
Targets of the supply chain
The main objective of the supply chain is the same as the overall objective of the company. overall objective of the company.
atisfying customer needs
In order to do so, the chain has to be dynamic, you must make sure that that you meet all the set times and that the materials are always of good quality and in the best condition.
Dithin this overall objective there are other related
, such as:
- To have adequate channels of communication and coordination.
- Avoid unnecessary losses.
- To have optimized distribution times.
- Obey with the delivery times of the products or services.
- Properly operate inventories and warehouses.
- Have the ability to cope with unforeseen changes in supply or demand.
Supply chain activities supply chain activities
To meet the objectives, the supply chain supply chain must perform a variety of
. These activities will vary according to the type of chainthe business model and the products or services to be distributed.
However, there are some basic activities common to all chains. Among these
we can find:
- Lhe planning of any of theof any of the stages.
- Lhe management of raw materials and finishedand finished products.
- Ehe processing of purchase ordersprocessing of purchase orders.
- The distribution.
- El contingency management.
- The customer serviceome of the customer service or payment processes.
Ecaps of the supply chain supply chain
All chain of supply consists of
which are: supply, manufacture and distribution.
It refers to the procurement of raw materials necessary for the company’s production process. Consideration should be given to how it is obtained, from where and when. This element is the first link in the production chain, so you have to make sure that everything is done correctly.
It is the process of transformation of raw materials, from which the finished products are obtained.
This is the stage in which the products reach the final consumers. This is where transport networks, warehouses and physical or online stores come into play.
Within these stages, the figures of suppliers, transporters, manufacturers and customers are essential.
How to improve on the Supply Chain ManagementSupply Chain Management or «Supply
There are some key
that should be taken into account to optimize supply chain management.o optimize supply chain management. These aspects are:
Use of the technology
Technology is essential to optimize the supply chain. Production requires a solution
for the management and control of stocks, raw material supplies, traceability or the financial situation.
This type of software allows you to optimize the process and reduce human errors, with cost savings. These solutions have transformed the industry in what is known as the fourth industrial revolution (or Industry 4.0).
Manage the procurement
Through the coordination between suppliers and customers, a better planning of supplies can be carried out., which allows the supply chain the supply chain is not broken at any time and reduces losses.
Logistics is one of the key elements of the supply chain. Companies that grow accumulate value in manufacturing of the products, but not necessarily in the distribution of these on a large scale. Rely on external companies for the logistics of the product, when este is sold on a massive scaleis a good good formula for to have efficient processes in place. Since these are carried out by specialized companies that have the following with experience and solutions to problems that may arise.