What Is Supply Chain Management?
Supply chain management is a common term relevant to a variety of industries and topics. In its most basic form, supply chain management is how a product or service comes to fruition from start to finish; it is the process by which most of what is around us comes to be and how it got there.
Logistics Supply Chain Management
In the shipping and logistics industry, we use an advanced, wide-spread supply chain in order to run in the most efficient manner possible. As a logistics company, it is our job to figure out the best way to get a product from one place to another and because of the nature of the job, that includes partnering with several other service providers across the country and world. Though we certainly play the main role in the moving of our shipments, the way that we are able to work most efficiently is by finding others to help us along the way as we manage the logistical necessities of the movement of goods.
Supply Chain Example
One of the most common beverages found in American homes is pasteurized cow’s milk, produced and brought all over the country. But have you ever thought of how that gallon of milk gets from the cow to your refrigerator? Let’s break down the process:
- Housing & Feeding of Cows: In order to produce nutrient-rich milk, cows must be well taken care of and fed a healthy diet.
- Production: Once a cow is old and healthy enough to give birth, it will begin to produce milk. The extraction of milk from the cows still happens by hand for many farmers, though larger farms have moved toward using milking machines to increase production.
- Transportation: Next, the milk must be transported from the farm to a processing location
- Processing: A milk processing center will handle many crucial steps to make sure the milk is ready for consumption including pasteurization, clarification and homogenization and a final test to ensure the milk is safe to drink.
- Packaging: Once confirmed safe to drink, milk must be taken from the large barrels where it is kept and packaged into bottles and cartons for consumers.
- Distribution: From the packaging stage, milk will then be handed over to a distributor to be delivered to the various places from which it will be sold.
- Retail: The distribution company will bring milk to their customers, supplying grocery stores, restaurants, schools and others.
- Consumption: Finally, the milk has reached its final stage and is with the consumer.
Questions About Supply Chain Management?
If you still have questions about how the supply chain management system works for the logistics industry, contact us and we’ll be happy to answer any questions you may have!