O supply chain represents an evolution of integrated logistics by encompassing and managing all phases of the production process, making it more coordinated and optimized. This ensures more efficiency in forecasting demand, reducing inventory and also reducing operational costs. In other words, it is more than a simple process, being considered an important competitive differentiator in the corporate world.
But, after all, how can a well-developed supply chain operation integrate all links in the logistics chain? In this article, we will explain how it works.
Supply chain integrates the links of the logistics chain
The term supply chain, which translated from English means “supply chain or supply network”, basically consists of the relationship between companies and people who are part of the entire logistical process of a given product, from raw materials to delivery to the final consumer.
In general, several areas of a company are part of the supply chain, both operational and strategic arms, such as:
- Sales;
- Accounting;
- Shopping;
- Production;
- Tax;
- Marketing;
- Human Resources;
- Stock and storage.
However, a complete supply chain also takes into account processes outside the company. In practice, it is a chain that applies to peers and other actors in the business supply chain.
This is because the capture of various raw materials and supply products is included in strategic management, which helps to identify the needs and functioning of a segment and the development of a more strategic demand and market process.
As it is a complex approach to the flow of goods, the effective application of the supply chain depends on technology. In other words, only with advanced tools and resources is it possible to automate tasks such as integrating and sharing data, ensuring assertive compliance with deadlines and helping to control performance indicators.
Benefits of Optimized Supply Chain
Even though it is more common in industries and large companies, the supply chain can bring benefits to all types of companies. The main advantages include:
- Sector integration
The focus of supply chain management is multidisciplinary, as several internal and external agents are part of the supply chain, but communication between everyone needs to be aligned. With correct management, the company can integrate all sectors involved in logistics processes.
- Cost reduction
Today, one of the main needs of a company is to reduce costs to maintain competitiveness in the market. In this context, one of its biggest bottlenecks is maintaining inventory. With the supply chain, it is possible to eliminate unnecessary occupation, helping to spend less on production and inventory through logistics optimization.
- Greater efficiency
Every company that seeks greater efficiency is always updating itself because it understands that continuous improvement adds value to its business. With good supply chain management, in addition to dealing with market demands, the company stays up to date, which increases its efficiency, one of the main objectives of the supply chain.
- Greater competitiveness
To be more competitive, the company must be prepared to deal with different scenarios and draw up strategic plans for its risk matrix. And this can be done in the best possible way with the supply chain. The operation allows taking into account the seasonality of inputs, periods of high demand, transportation issues, among other details that affect its performance in the market.
- Increased profits
Finally, good supply chain management is also essential for the company's financial health by reducing the need for fixed assets such as inventory or maintenance. This helps to reduce costs and ensure greater financial balance.
Conclusion
In short, having a supply chain operation is the main characteristic of companies that are today considered market leaders. This is a strategy that guarantees maximum efficiency by ensuring that everything works correctly, from capturing the raw material to delivering the product to the end consumer.
