x Is your business new to the supply chain, need to learn the concept and importance of this model?
x Are you wondering if there is any difference between supply chain and logistics?
x You need to find out what the main activities in a business's supply chain include?
At Proship.vn, we will synthesize knowledge from many sources to clarify the knowledge you need to know about what supply chain is, the role and importance of supply chain in a business's supply chain. At the same time, you also need to understand the activities taking place in the supply chain to apply them effectively.
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Ms Tien: 0909 986 247
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Supply Chain: Concepts and common models
Supply chain concept
What is supply chain? Supply Chain is a series of activities involved in the production, transportation, storage and distribution of goods from the source of supply to the final customer.
Supply Chain includes suppliers, manufacturers, distributors, retailers and customers. The goal of Supply Chain is to optimize the process of providing goods and services to customers with the lowest cost and highest quality.
Popular models in Supply chain
The model moves continuously
This is a suitable model for manufacturing businesses with products that rarely change. These products often have high demand and do not need to constantly change their design.
With a continuous movement model, managers need to regularly replenish raw materials to avoid production bottlenecks. Some products in this model include common consumer products (washing liquid, detergent, etc.) or medical tools and food.
Flexible model
Flexible supply chains are suitable for businesses that produce products and goods according to seasons and holidays. They rely on times of increased demand for the product and then accelerate quickly to bring the product to market and know to stop at the right time when demand has decreased such as moon cakes, Tet gifts, Christmas decorations, calendars, etc. …
Fast chain model
This model is suitable for businesses that produce products based on the latest trends. This Supply chain model must continuously research the market, analyze competitors, consumer trends, etc. These businesses must quickly move from ideas to finished products to deliver to end users such as fashion. , phone,…
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The role and importance of Supply Chain
The smooth running of supply chains is central to the way many businesses operate. For these businesses, if their supply chain is clogged, it will cause serious consequences. The importance of Supply chain must include:
- Ensuring a stable supply and meeting the production and business needs of businesses;
- Manage production, transportation and storage costs to optimize the production and distribution of products/services to final consumers;
- Effective circulation management helps optimize production and reduce waiting times as well as transportation and inventory costs;
- Limit risks, optimize business efficiency of seasonal products with limited shelf life;
- Help businesses manage product storage, ensuring businesses are always ready to supply customers when needed;
- Increase profit after tax.
To ensure the quantity of goods remains stable and reasonable, a balance between inventory and sales, an optimally functioning supply chain is important. However, to achieve this goal, businesses need to have accurate forecasts of supply and demand of goods to determine reasonable inventory levels and avoid market manipulation.
Shipping contact hotline:
Ms Tien: 0909 986 247
Ms Dung: 0939 999 247
Ms Duy: 0902 581 247
Supply chain activities Supply chain
After understanding what the term supply chain is, new businesses participating in this process also need to clearly understand the activities taking place in the supply chain, specifically:
First: Make a plan
In Supply chain, planning and organizing activities need to be done first. Includes some of the following activities:
- Product pricing:
Price is an important factor for both businesses and consumers. If you come up with a reasonable pricing strategy, businesses can ensure the competitiveness of their products. Therefore, it is necessary to research and set the appropriate price based on target customer needs and product scarcity to decide the price.
- Demand forecast:
Businesses need to learn, research, and determine consumers' needs and purchasing trends, from which they can plan appropriate production and business, avoiding excess inventory, causing serious losses.
- Warehouse management:
Find a solution to reduce storage costs to a minimum, which can eliminate or limit unnecessary costs in the final product price.
Second: Search for raw materials and goods sources
This activity in the Supply chain helps businesses easily compare the quality of different suppliers. From there, businesses will have a basis to choose suppliers that suit their criteria and requirements. This activity includes purchasing and selling on credit.
Third: Production activities
It is an important activity in the entire supply chain and is the activity that brings the final profit, maintaining the existence and development of the business. To achieve the highest efficiency, businesses need to focus on:
- Product design: Ensure functionality, design, characteristics,... to suit customer requirements;
- Production process: Calculate production time and optimize the process to ensure timely response to current customer needs.
Fourth: Distributing products and services
Finally, businesses will distribute products/services to consumers. At this time, it is necessary to calculate the delivery, return, ordering, and shipping activities to be carried out smoothly, ensuring the product is delivered to customers as early and completely as possible.
In distribution activities, businesses need to:
- Strictly manage quantity, quality, time, location, etc. of products according to customer requirements;
- Schedule deliveries, ensure everything goes smoothly and deliver products on time as committed;
- Arrange the process of transporting damaged or missing products to the warehouse for repair and replenishment.
Above is a sharing of what the supply chain concept is and knowledge related to the supply chain. Businesses that do not have experience in this activity or are having problems in any operational stage should apply the above to make the supply chain effective... You need to use cheap Multi-modal transport service At Proship Logistics, contact immediately 0909 344 247
Shipping contact hotline:
Ms Tien: 0909 986 247
Ms Dung: 0939 999 247
Ms Duy: 0902 581 247
