During the years that we have been executing logistics projects, we have come across similar doubts that our clients have about the supply chain: What is its purpose? What makes it up? Is logistics and supply chain the same thing? How can we be competitive?
We believe that the main objective of a supply chain is to provide items and materials in the required quantity, quality and time at the lowest possible cost.
Consequently, the supply chain is made up of a set of elements that allow companies to have the necessary organization to carry out the development of a product or service and ensure that it meets the main objective, which is essentially to satisfy the needs of the end customer.
¿HOW CAN WE BE COMPETITIVE?
So: How can we be competitive, i.e. where will we achieve efficiency in our supply chain?
To be more precise, the question would be: How can an organization achieve the following goals?
Establish efficient communication channels.
- Implement adequate coordination.
- Avoid unnecessary losses.
- Improve distribution times.
- Adequate inventory management.
- Respect delivery times.
- Respond effectively to changes in demand and supply.
Simply put, the first thing is to understand the components of a supply chain; without getting into a debate about the components of a chain, we believe we should stick to the following fundamental components:
Logistics, therefore, belongs to the supply chain, basically because it consists of execution, and nonetheless, supply chain management is the supervision of that execution.
The logistics process of a company on the one hand ensures that the product arrives from the factory to the end point in optimal conditions within a certain period of time. That is why we say that logistics includes factors such as transportation, storage, distribution to the manufacturing lines, picking and fleet control.
The supply chain, on the other hand, oversees all tasks from a more global point of view: manufacturing, raw materials, warehousing, logistics, suppliers, etc.
Understanding this, we rely on the following work model to contribute to the efficiency of the supply chain:
As a summary, the application of this model requires a continuous and reliable verification of the application of the methods, standards, indicators that can be established according to the type of organization, which means: Processes, People, Machines, and the Support of the personnel involved, coordinated by the work method that a good project management such as Scwuimac! can provide.