Things To Know About Supply Logistics
Also known as ” supply chain ” or ” supply chain, “supply logistics is about monitoring, managing, and transporting logistical elements, ranging from raw materials — if applicable — to the product that will be sent to the end customer.
The idea is to adequately plan and control tasks related to supply, which is the smallest and most important unit of a logistical structure.
When thinking about this process from the chain’s point of view, there is the need to control and follow up from the beginning to the last link in the chain – which is the receipt of the item by the customer. For it to be performed correctly, the main steps include:
Survey Of Suppliers
There is no supply if there is no one to supply the supplies. Therefore, one of the first steps consists of surveying possible suppliers for a given product or activity.
To choose a good supplier, it is necessary to define the required quality, desired flexibility, delivery time, value, and availability of products. Based on this survey, quotations indicate the supplier that offers the best cost-benefit ratio so that supplies are obtained as desired.
Demand And Purchase Forecast
Another crucial issue for supply logistics is making miscellaneous forecasts — also known as forecasts. In the case of demand forecasting, the consumer’s behavior is considered to identify what the possible sales values will be within a certain period.
From there, it is easier to make the purchase forecast. When demand is very high, purchases must also be increased to avoid shortages—and vice versa.
As predictions use statistical and mathematical methods, they do not always correspond to reality. In other words, a demand forecast may present a more optimistic scenario than what happens.
The opposite can also happen: a jump in interest can make purchases not enough. The best way to identify these situations and act in advance is to carry out inventory management. This monitoring makes it possible to ensure that the business does not overspend or run out of supplies.
This logistics according to wicker park logistics also has to do with delivering these supplies to customers. Therefore, the transportation concern is essential in this regard.
It is the case of carrying out the routing of deliveries: it is necessary to select the appropriate path for the objectives and interests of the enterprise. In addition, it is also worth monitoring transport and keeping track of metrics linked to delays or imperfect deliveries.
There is a complete concern with obtaining raw material and continues until the correct item is in the customer’s hands within the desired period.