Supply Chain logistics
08/07/2011
Supply chain logistics Procurement and Inventory Management
Procurement and inventory management are the main developmental tools that today’s supply chain logistics companies have to deal with. To be competitive, logistics companies need to look at and constantly hone their customer satisfaction strategies, their speed and their sourcing methods.
Other factors at play when managing and improving supply chain logistics include the management of processes and control systems of the inbound supply chain. risk pooling and multi-stage inventory control systems, procurement processes and strategies and the value of collaboration and streamlined information and financial flow in supply chains, supplier relationship management as well as basic logistics planning and inventory management are all important.
Both service and manufacturing identities identify with the fact that successful procurement and as a whole supply chain logistics are essential to their business models. Ineffectual supply chain logistics can lead to the difference between profit and loss. The reason for this is that sending on raw materials - particularly where manufacturing is concerned is often the single biggest source of budget use. Supply chain logistics so also take care of inventory management - ensuring that a company knows where their goods are at any one time and they don’t hold onto the goods for too long.
The primary purpose of a supply chain is that it brings all the differing elements together in one symbiotic relationship - cutting costs and keeping users informed as well as delivering effectively customers.
