Supply Chain & Logistics

No we are not talking about just trucks here, a common misconception.

Did you know that a business supply chain starts from the beginning, and ends at the beginning! It does a complete cycle of the business process. In other words, raw material is supplied to the plant to start the production process, but Demand Planning determines how much raw material is required based on what the customer needs to be delivered to his door, and by when in some future time.

Your supply chain encompasses all your supply processes, and logistics focuses on the transport and warehousing of your product, to put it simply.

BEFORE

BEFORE

AFTER

AFTER

Supply chain is a system that involves organizations, people, resources, information and activities in order to get a product or service from the supplier to the customer.

Logistics is the overall management of the way resources are obtained, stored and moved to the locations where they are required.

Do you think planning systems fall part of supply chain? They do indeed. A supply Chain Manager plays a large role, by definition, in any business.

What percentage of sales are you spending on your supply chain and logistics functions? If this is around 20% to 30%, then you are amongst many other companies, industry dependent. Now save 10% to 15% of these costs through cost optimization projects and you will feel the difference.

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