Familiarizing Yourself With Supply Chain Logistics

Whereas supply chain management is concerned with the effectiveness of supplying product to customers down the line from the original production, supply chain logistics starts much sooner in the process. In order to be effective in managing your supply chain, you may want to familiarize yourself with the aspects of supply chain logistics as well.

Logistics management involves the planning and implementation of a marketing scheme, as well as the flow and storage of goods throughout the entire supplier process. Sourcing and procurement are part of the logistics process, meaning that you must determine from where the inventory and supplies you intend to provide to others are going to come to you. The logistics management process also include the planning and scheduling of any orders, deliveries, shipping, and other transportation needs of the supplies along the chain. Let’s break it down from the beginning.

• Source – Once a source of goods is determined, you must secure a relationship with this supplier. For your part, this usually means being set up as some sort of distributor or representative that will act as a go-between from the source to the next step in the supply chain.
• Fleet – You will need to set up transportation needs for shipment of the goods that you intend to manage within your inventory. This could be provided from several directions. The source may have a means of shipment, your company may have an in-house transportation department, or you could outsource this work to a transportation or delivery company.
• Warehousing – Once you have the goods, supply chain logistics management requires that you have somewhere to put it. This means having sufficient warehouse space and an organized inventory system into which items can be placed. An inventory management software system and proper labeling and bin placement are vital to controlling the flow of the supply chain.
• Order Fulfillment – In order to complete this aspect of supply chain logistics, there are several requirements to keep in mind. You must have a strategy for taking orders, a process by which these orders are pulled and properly packaged for shipment, a plan for delivery, and a means of tracking the outgoing product so that you can replenish stock as necessary.
• Coordination – All aspects of the supply chain logistics process must integrate seamlessly, meaning that you must carefully coordinate the processes to make the flow of supplies from one area to the next efficient and smooth. Without careful planning, it is quite easy for one aspect of the chain to fail and several customers to be disappointed.
• Customer Service – This is probably the most important part of supply chain logistics, as it affects every step along the way. Regardless of the stage of the transaction or supply process, every customer that is dealt with wants to receive assistance in the fastest, most efficient way possible, with a willing and smiling individual helping them through their part of the transaction. No matter who you are working with, be certain to provide a pleasant front and always strive to achieve the goals of the customer.