Every business – large and small, regardless of the industry – has a supply chain. The supply chain is all those activities that take place as raw materials or services are transformed into end products/services. It also encompasses delivery of the product or service to the end user.
Managing the supply chain ranges from sourcing raw materials through manufacturing or assembly, storage, delivery and even includes waste disposal.
As a business grows, owners face a variety of supply chain challenges. Identifying and implementing solutions can bring increased efficiency in production, cost management and improved output and increased client satisfaction.
These are the essential elements of a supply chain:
- choosing suppliers – single and multiple
- managing supplier relationships
- production planning
- inventory (stock and materials) management
- freight, transport, distribution and logistics
- lead times
- procurement and purchasing
- customer service
- computer software and data systems
- communications chains
- reverse and return logistics
- complaints management
- distribution.
Contact your local Business Advisory Service for advice on managing the supply chain or identifying consultants who can help.