The Importance Of Supply Chain Management

A common misnomer of the words “supply chain” is that this is simply the shipping and receiving that is done by a company. Truth be told, a company’s supply chain is that and much more. Supply chain management involves all supply and demand of any business. Let’s consider a typical manufacturing company as an example. Their process begins with the sourcing and storage of raw materials. This involves finding the right mix of reliable suppliers, and the warehousing needed for the storage. Next, you have the shipping and receiving of finished goods from the manufacturing facility to either the end customer or another warehouse. Supply chain management becomes especially critical in that part of the process as they manage the logistics and transportation of those good until they reach their destination.

Supply chain management

As you can see there are several aspects of the supply chain that must be managed. This is why many companies are finding it beneficial to outsource certain areas of the supply chain, whether it be the transportation or logistics end of the business. One area that remains key is freight forwarding services. Any reliable freight forwarder will offer an array of transportation options with a global reach. This involves the ability to utilize air, sea, and land freight. However, mode of transportation isn’t the only area that is key when choosing a freight forwarder. There is level of expertise needed when dealing with local customs, as well as shipping into more complicated countries like Russia and areas in the Middle East. If you can find a company that provides reliable door-to-door transport at an affordable cost then that will greatly ease some of your supply chain burdens.

Outsourcing some of these vital services isn’t only about increasing efficiency and knowledge, but also about lowering your costs. Keeping the sort of expertise needed in-house can be costly as the amount of human capital needed is vast. For small to medium sized businesses it simply isn’t practical to retain staff members that are knowledgeable about all the different countries that you ship to. It also doesn’t make sense to purchase and maintain the fleet necessary to transport your products via land, air, and sea. Could you imagine the logistical nightmare that comes with maintaining a fleet of trucks or boats? Finding the right supply chain partner is one of the first steps to running a successful and efficient business.

Share this article: