Manufacturers, suppliers and retailers depend on having consistent levels of resources and stock for producing goods and selling products. Supply chain management (SCM) services provide businesses logistical support directed at maintaining these consistent resource levels. SCM can also reduce costs and organizational complexity while increasing customer satisfaction.
Maintaining Optimal Inventory
The main focus of supply chain management is keeping products moving until their final point of consumption. Services are broken into components that support each other for consistent operation. Inventory is managed by accounting stock and consumption, a process that allows for businesses to know that resources and products will be available when needed. This inventory process communicates with other processes like distribution, finances and supply, and works to prevent any shortages or delay in availability by calculating the current rate of consumption with the expected date of delivery. Warehousing and distribution helps to store inventory and deliver it to where it’s needed. Supply provides current numbers of available materials. Finances allow for dependable models that outline the benefits and expenses of obtaining more stock resources and products.
Reduce Organizational Complexity
By using these processes together, a greater functioning service can be provided that identifies where to buy consumables, how many to buy and how to deliver them for consumption. Using a single third logistics provider (3PL) to combine the processes helps to mitigate costs associated with contracting each process out to individual companies. Outsourcing to one 3PL also helps mitigate problems with collecting and sharing information, since there is no need to pass information or data between multiple companies.
Supply chain management revolves around providing the end customer their desired material or product, so the customer’s needs are always a top priority. This means a logistics service provider is just as focused on delivering quality services to the business as much as the business is focused on delivering a quality product. Outsourcing logistics to a third-party allows for a business to focus on production of goods, so that in the end the customer gets a combination of a higher-quality product delivered in an optimized fashion.
Supply chain management is composed of many processes that are integral for businesses to keep operations moving. A supply chain management service provider helps businesses to keep inventory in stock, to ship and store stock, to calculate expenses and consumption, and to provide recommendations for improving overall performance. With these services, businesses benefit by serving their customers higher-quality products with on-time delivery. If you are looking to streamline your business operations while increasing customer satisfaction, please give us a call today.