Whether you’re a small or large company, the supply chain is certainly the backbone of your business. Can you imagine not having the right products in the right place at the right time to sell to the end customer?
Supply chain management can seem complex because it encompasses all the operational stages from the supply of the initial raw materials until they become services or products in the hands of customers, which is precisely why at Olicargo we turn your challenges into solutions by combining the efficiency and precision, know-how and differentiation required to deliver a premium service that is completely tailored to your needs.
Understanding the key stages of the supply chain is the first step to ‘de-complicating’ it and recognising how you can optimise your company’s performance, find out more in today’s post!
1. Planning and Demand Management
Demand forecasting begins by collecting and analyzing data from previous sales, and combining this informations with macroeconomic trends and changes in customer behavior, in oreder to project future sales and guarantee product availability.
Other aspects that should be considered in the planning phase are: labour hours, costs, feasibility of production methods and profit expectations.
2. Procurement
Identify and acquire the resources needed to meet demand forecasts. This includes:
– Find key suppliers.
– Ensure that the materials comply with the product specifications.
– Price negotiation.
– Buying the right amount of materials.
The next step is to monitor supply and adjust orders based on demand.
3. Production planning
It encompasses all the stages that involve transforming raw materials into finished products, namely: manufacturing, quality control and packaging.
At this stage, it is crucial to reduce waste and inefficiency to prevent product quality, operations and profit margins from being compromised.
4. Inventory management
Once the products are ready, they can be placed in stock for sale. Products should be monitored as they move from manufacturing to warehousing and finally selling.
Maintaining accurate and up-to-date stock levels in real time is critical to supply chain management. For example, if raw materials are not available when and where they should be, the entire production process is disrupted.
5. Transportation
Although companies now operate as part of a global economy, location still plays a role in supply chain management.
If you want to organize the transport of goods – whether raw materials or finished products – it’s easier to deal with a logistics provider who’s just a short drive away than one who’s many kilometers away, especially if there’s a problem.
6. Delivery and Order Fulfillment
Then, once the transport method has been determined, the goods are delivered to the client.
Sources:
Pulse (2021). 10 Logistics Management Processes for Mastering the Supply Chain .Accessed October 09, 2023, at: https://www.pulsepro.ai/blog/top-10-logistics-management-processes/
GoCardless. (2021). The Basic Steps of Supply Chain Management. Consulted on October 9, 2023, at: https://gocardless.com/guides/posts/the-basic-steps-of-supply-chain-management/
