What is meant by supply chain and why it can affect your business

There supply chains, or supply chain, is one of the key elements that keep the global economy moving: behind every product we purchase lies a very complex process that concerns both the receipt of raw materials from the supplier, the production, and both the logistics and distribution of the goods. A process that has fundamental importance also in relation tobusiness internationalization, especially for businesses that they want to sell abroad. 

In fact, with the increasingly clear emergence 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 large fluctuations in product demand, following events such as lockdowns and the Russian-Ukrainian conflict. That's why it has to be efficient and capable of achieving 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 stagnation.

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

The importance of collecting and constantly monitoring data in a supply chain

For an increasingly efficient and productive supply chain, it is essential acquire the data necessary to manage each phase, starting from the procurement of the materials necessary for the production of the goods until reaching the final customer. 

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

The automation and standardization of processes

Make the processes within a supply chain as automatic and standardized as possible, allows you to optimize time and resources. Today it is possible to use machines and programs in warehouses that allow the operations within them to be managed efficiently and safely, for example by moving the products by special conveyors that are specifically suitable for that type of goods.

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

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

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

To create a supply chain that meets expectations, you can rely on the figure of Supply Chain Manager (SCM), which has the task of organizing and presiding over all phases of this circuit, including the passage of goods and information. 

Octagona can assist your company to plan each flow of the supply chain, as well as provide any consultancy related to export, including digital. Do not hesitate to contact us through this form for any questions.