Role of Logistics in Supply Chain

Role of Logistics in Supply Chain – LM Blog-02

Advantages of Supply Chain Management In this era of globalization where companies compete to provide the best quality products to customers and meet all their demands. Supply chain management plays a very important role. Almost all companies are effectively highly dependent on the supply chain process.

Let’s take a look at the major advantages of the supply chain. Although we have mentioned about it in many of our blogs, many people have the desire to know about it. The benefits of supply chain management are as follows:

  • Logistics Supply Chain develops better customer relationships and service.
  • Logistics supply chain better for in-demand products and services with minimal delay Creates delivery mechanisms.
  • Logistics supply chain improves productivity and business functions.
  • Logistics supply chain reduces warehousing and transportation costs
  • Logistics supply chain reduces direct and indirect costs.
  • Logistics Supply Chain helps in getting the shipping of the right products at the right place at the right time.
  • Logistics supply chain enhances inventory management, which supports the successful execution of stock models from time to time.
  • Logistics Supply Chain helps companies adapt to the challenges of globalization, economic turmoil, expansion of consumer expectations, and related differences.
  • Assists companies to reduce waste in the supply chain process, drive costs and achieve efficiencies.

These were some of the major advantages of supply chain management. After taking a quick look at the concept and advantages on supply chain management, let us look at the main goals of this management.

  • Supply chain partners work as partners at various levels to maximize resource productivity, create standardized processes, remove duplicate efforts, and reduce inventory levels.
  • The priority of the supply chain is also to reduce costs, especially when there are financial support uncertainties in companies regarding their willingness to save capital.
  • Cost-effective and cheap products are essential, but supply management chain managers focus on building value for their customers.
  • Exceeding customer expectations on a regular basis helps them The best way to satisfy.
  • Logistics supply chains must be matched by increased product expectations, customized items, off-season availability of inventory and increased expectations of customers for faster fulfillment at cost than in-store offerings.
  • To meet consumer expectations and merchants need to use distributed order management technology to leverage inventory as a shared resource and fulfill orders from the optimal node in the supply chain.

Finally, supply chain management aims to contribute to the financial success of an enterprise. Apart from all the points highlighted above, it aims at leading enterprises using the supply chain to improve differentiation, increase sales, and enter new markets. The aim is to drive competitive advantage and shareholder value. In the next blog we will learn about (SCM-Process).

SCM-Process 

Supply chain management is a process used by companies to ensure that their supply chain is efficient and cost effective. A supply chain is a collection of steps that a company takes to convert raw materials into final products. Five basic components of supply chain management are discussed:

 

 

1. Plan

The initial phase of the supply chain process is the planning phase. We need to develop a plan or strategy to know how the products and services meet the demands and requirements of the customers. In this phase, the plan should primarily focus on designing a strategy that provides maximum benefit.
In order to design products and manage all the resources required to provide services, a strategy must be devised by companies. Supply chain management mainly focuses on planning and developing a set of metrics.

2. Development 

After planning, the next phase involves development or sourcing. In this phase, we mainly focus on building a strong relationship with suppliers of raw materials required for production. This involves not only trustworthy suppliers
Identifying but also determining the various planning methods for shipping, delivery and payment of the product. Companies are required to select suppliers to deliver the goods and services needed to develop their product.
So in this phase, supply chain managers need to create a set of pricing and delivery and payment processes with suppliers and also to create metrics to control and improve relationships.
Finally, the supply chain manager processes all these goods and  Can be added to handle the list of services. This handling involves receiving and checking shipments and transferring them to manufacturing facilities and authorizing supplier payments

3. Make

The third step in the supply chain management process is to manufacture products that are demanded by the customer. In this phase, the products are designed, produced, distributed, tested, packaged and synchronized for distribution.
Here, the job of supply chain manager is manufacturing and testing and packaging and All activities required for preparation for delivery are to be determined.
This phase is considered the most metric-intensive unit of the supply chain, where firms can measure quality levels and production and worker and productivity.

 

4. Deliver

The fourth stage is the delivery phase. Here the products are delivered to the customer at the place designated by the supplier. This phase is basically the logistics phase, where customer orders are accepted and delivery of goods is planned.
The delivery phase is often called logistics, where firms choose partners to receive orders from customers and establish a network of warehouses, and to deliver products to the branch and receive payments, and to establish invoicing systems.

5. Return

As a return to the last and final stage of supply chain management Is known. Defective or damaged goods are returned by the customer to the supplier at this stage.
Here, companies are required to deal with customer queries and answer their complaints etc. This phase is often a problematic segment of the supply chain for many companies. Supply chain planners need to find and build a responsive and flexible network to withdraw damaged and defective and excess products from their customers and facilitate the return process for customers with issues with products delivered.



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