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What is supply chain and why it may affect your business

What is supply chain and why it may affect your business

TLDR
  • The supply chain includes the supply of raw materials, production, logistics, and the distribution of goods to the final customer.
  • Online commerce and events such as the lockdown and the Russian-Ukrainian conflict have made the supply chain more complex and demand more unstable.
  • An efficient supply chain aims for lean processes that reduce costs and waste, to safeguard profits even in times of market stagnation.
  • Data collection and monitoring, automation and standardization of processes improve warehouse management, product traceability, and logistics planning.
  • The Supply Chain Manager coordinates all phases, including the movement of goods and information, while artificial intelligence optimizes costs and increases productivity.
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The supply chain, o supply chain, is one of the key elements that keep the global economy moving: behind every product we buy is a very intricate process involving both the receipt of raw materials from the supplier, the production, and both the logistics and distribution of the goods. A process that has paramount importance also in relation to the’business internationalization, especially for enterprises that want to sell abroad. 

In fact, with the increasingly sharp rise of online commerce, the supply chain has become increasingly complex, having to deal with A scenario that transcends national borders. For example, the supply chain must consider the wide fluctuations in product demand following events such as the lockdown and the Russian-Ukrainian conflict. For this, it must be Efficient and able to achieve lean production processes, capable of reducing costs and waste, with the aim of safeguarding the company's profits as much as possible even in cases of market deadlock.

In this article we will therefore explore the crucial importance of the supply chain in the era of globalization.

The importance of constant data collection and monitoring in a supply chain

For an increasingly efficient and productive supply chain, it is critical to Acquire the data needed to manage each stage, starting from the procurement of materials needed to produce the goods to reaching the end customer. 

There are programs that can simplify this, aimed at tracking each process and providing any necessary information for it. This can be particularly useful for the warehouse management and for Tracking the goods at all times.

supply chain

The automation and standardization of processes

Making processes within a supply chain as automated and standardized as possible, makes it possible to optimize time and resources. Today it is possible to use machines and programs in warehouses that enable them to efficiently and safely manage operations within them, for example by having products moved by special conveyors that are specifically suited for that type of merchandise.

Again thanks to the latest technological innovations, the company can make use of software that coordinates every aspect of logistics and product distribution, planning all their movements.

The supply chain and the advantage it can be for your business

The upgrade chain is also becoming increasingly automated through the use of artificial intelligence. This results not only in cost optimization, but also in a better production yield and in a better experience for customers.

To realize a supply chain that meets expectations, one can rely on the figure of the Supply Chain Manager (SCM), which is responsible for organizing and presiding over all phases of this circuit, including the passage of goods and information. 

Octagona can assist your business to plan every supply chain flow, as well as provide any Export-related advice, including digital. Do not hesitate to contact us through this form for any questions. 

Frequently Asked Questions

What is meant by the supply chain and what stages does it comprise?

The supply chain, or the supply chain, is the set of processes that bring a product from the supplier to the final customer. It includes receiving raw materials from the supplier, production, logistics, and the distribution of the goods. It is a key element of the global economy and the internationalization of business.

Why is the supply chain important for a company that wants to sell abroad?

The supply chain is important for exporters because, with the growth of online commerce, they must manage a scenario that transcends national borders. An efficient chain reduces costs and waste, keeps fluctuations in demand under control, and protects a company’s profits even when the market slows down or stops.

Which events have made the management of the supply chain more complex?

Supply chain management has become more complex due to the expansion of online commerce and events such as the lockdown and the Russian-Ukrainian conflict. These factors have caused widespread fluctuations in product demand, and require lean production processes that are capable of adapting quickly to market changes.

How can the supply chain be made more efficient with data and automation?

The supply chain is made more efficient by collecting and monitoring data at every stage, from material procurement to the final customer, and by automating and standardizing processes. Dedicated programs allow for warehouse management and tracking of goods. Machinery and software coordinate logistics and distribution, planning all product movements.

What role does artificial intelligence play in the supply chain?

Artificial intelligence is increasingly automating the supply chain, with effects on costs, productivity, and customer experience. It allows for cost optimization and improved production. It must be integrated with data, logistics management software, and standardized processes, under the coordination of a dedicated figure.

What does the Supply Chain Manager (SCM) do in a company?

The Supply Chain Manager (SCM) is the figure who organizes and oversees all phases of the supply chain, including the movement of goods and information. Their task is to build a supply chain that meets the company’s expectations, coordinating supply, production, logistics, and distribution to the final customer.

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