Supply chain management is the management of the three most important resources of a company which are:
- Material
- Money
- Information
1. Material
Supply Chain controls the flow of material from the manufacturer to the end user. This involves manufacturing, shipping, customs clearance order fulfillment and transportation. This is a very complex process as it involves so many variables an a lot of dynamic interactions between manufacturers, shipping companies and distribution networks. All of these entities have to be in constant contact to make sure that the delivery of goods goes with without a glitch.
Supply chain and logistics
You might ask where does logistics fall into the big picture. Logistics by definition is the movement of goods or services from point A to point B or in the case of 3PL Companies from factory to consumer.
Which companies are considered logistics companies
Logistics companies have become more involved in the supply chain offering services such as inventory control and working with manufacturers. This part of logistics is called “contract logistics”
2- Money
Without the timely delivery of goods and cutting costs no company can survive. SCM guarantees the flow of money. (This will be discussed in detail in a future article)
3- Information
Flow of information is key to the survival of any company, Supply chain connects all the divisions of the company to cut down on mistakes and conveys information seamlessly. (This will be discussed in a Future Article)
In recent years, Logistics companies are playing a larger role in supply chain management taking on more responsibility and more activities under the supply chain Umbrella.
Nowadays you see 4PL Companies. 7PL companies and contact logistics companies playing an integral part of the Supply Chain.
7PL companies have become a great resource to Supply Chain managers.
Resources: Best 3PL Companies in the USA