ABOUT SUPPLY CHAIN

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by Admin  20   Feb, 2019

ABOUT SUPPLY CHAIN

The supply chain is the continuous process that takes place between two entities where right from the beginning of the chain until the very end of it, a product is born! It basically helps in bridging the gap between what is demanded by the people and what is produced by the producers/business houses. It facilitates the complete process of product building right from acquiring appropriate raw materials from ideal sources to supplying these raw materials to the manufacturing plants who in turn would manufacture the goods with them.

Both raw materials, as well as the finished products, need to be stored for individual reasons. Seasonal raw materials may, for example, be available only occasionally. This would result in a ‘knot’ in the ‘chain’. In order to avoid such situations, the raw materials may be procured beforehand and stored at warehouses. This will ensure complete and timely availability of the required materials. Raw materials are transported by road, sea or air to the concerned manufacturing plant. In order to keep in check, the location and whereabouts of the materials supplied technology in the form of GPS, CRM Software and ERP can be used. This will ensure the safety of the materials all throughout the transportation.

When the goods reach the manufacturing plants they will be converted into finished goods or final goods. This process requires industrial equipment, workers with appropriate head and body gears for safety, RFID system and barcodes to keep data in their systems. The finished products, on the other hand, cannot be shipped off to distributors right after its production. Depending on the demand for the good in the market as well as the availability of transporters and technology, the products will have to be shipped. The remaining products will be stored in warehouses. When the goods are produced they will have to be shifted to warehouses till its demand arises. Perishable goods will need special equipment to facilitate storage. Warehouses need to be equipped according to the nature and type of goods that will be stored. This will assure the sustainability of the good. When the demand arises, the goods will be forwarded to distributors who will further sell them to smaller retailers that include a mix of small shop owners as well as giant retailers such as supermarkets. The customers can then avail the required goods from these retailers. This process, beginning with obtaining the raw materials to getting the final product in the hands of the customer, is conventionally facilitated by logistics companies.