Supply chain management oversees all of the raw materials, manufacturing and logistics processes that help businesses get products to customers quickly. This includes managing trade and order management, inventory control, and other processes.
The first step in the supply chain involves procuring raw materials from vendors. Next, manufacturers assemble the raw materials into products that are offered for sale. These products are then transferred to regional distribution centers, wholesalers or retailers who offer them directly to customers.
Customer Service
Customer service is usually thought of as the face of a company, but it can also be an important part of dealing with logistics. The supply chain isn't complete until the product reaches the customer, so the customer service team can collaborate with those in charge of packaging and transporting to ensure that customers receive exactly what they want.
The customer service team is also responsible for tracking order status and communicating delays to customers. This requires real-time supply chain visibility, which allows them to track shipment progress and provide updates promptly.
Customers expect their orders to be delivered on time, and a company that fails to meet those expectations will lose business. By integrating customer service into their logistics and supply chain operations, companies can achieve high levels of customer satisfaction while improving profitability. This is one of the key secrets to sustainable growth in ecommerce. A solid customer service approach also helps fine-tune supply chains, reducing disruptions and overall costs.
Inventory Management
Inventory management involves balancing the amount of products coming in with the amount going out. This requires a close eye on costs and efficiency as well as the quality of raw materials. This also entails tracking products in multiple locations.
Inaccurate inventory counts can cost a business money. For example, if perishables spoil because they weren't sold in time, the company must write it off as dead stock and purchase more.
Good inventory management prevents this by using the first in, first out (FIFO) methodology, which moves older merchandise to the front of shelves and keeps inventory fresh. It also saves cash by ensuring that new merchandise is constantly on the way to replace what's being sold. A good inventory system will include features that automate low-stock alerts and reorder points, which can streamline purchasing and avoid backordering. This allows for greater flexibility with cash flow and improves customer satisfaction. You can find a range of inventory management software online, including free and affordable options. Choose intuitive and easy-to-use software with excellent customer support and learning resources to ensure your team can quickly get up and running with the technology.
Inventory Control
Supply chain management involves a network of people and companies that move products from raw materials to the final product that a company sells to customers. These processes include inventory management, logistics and purchasing, among others.
Inventory control measures how efficiently a business keeps track of its products for sales orders, accounting and financial reporting purposes. It includes determining the most efficient reorder points, adjusting safety stock levels and using a system of logging and counting inventory.
The inventory control process also involves choosing the best tools for tracking and recording inventory, such as spreadsheets and bins or RFID tags and software. A good inventory control system prioritizes accurate counts over other concerns, such as time to count and physical storage space.
Another important inventory control technique is Just-In-Time manufacturing, which prioritizes shipments of raw material to factories based on forecasted sales orders and eliminates the need for excess warehouse space or high shipping costs. This method also reduces the risk of stockouts, which reduces customer satisfaction and hurts a company's reputation.
Supply Chain Planning
Supply chain planning is one of the most important aspects of the entire supply chain management process. It helps companies get their products to market in a timely fashion, so they can meet customer demand and achieve revenue goals. It also enables them to keep their costs down by efficiently managing materials and transportation.
This is a complex process that involves many different steps and departments within the company. It can be impacted by global events that are outside of a company's control, such as natural disasters or political unrest. It also includes ensuring that the company has a good reputation with suppliers for fair business practices, such as paying on time and not overcharging for goods.
Technology is helping to improve and speed up this process. AI-powered algorithms help to increase productivity and reduce Transportation Optimization the amount of re-planning that is needed when a problem arises. This helps to lower costs and increase customer service.
