Supply Chain Logistics Definition
A supply chain is made up of a large number of businesses, which makes it logistically challenging to deliver goods and services into the hands of customers. Supply chain logistics, also referred to as the spine of global trade, is a network of warehouses, inventory, and transportation. Executives in the field of supply chain logistics must be able to select the most cost-effective mode of transportation, design and set up a warehousing facility, control and manage inventory and assets, and establish an effective logistics network while minimizing costs and providing first-rate customer service.
Challenges of Supply Chain Logistics
Common supply chain logistics challenges include customer service, cost control, planning and risk management, supplier/partner relationship management, and talent. As companies become more global, however, they face the challenges of being flexible enough to successfully grow and expand into new markets in order to remain competitive.
Today’s supply chain logistics executives oversee and drive multiple supply chains and work tirelessly to meet the needs and expectations of customers and suppliers. Personalized offerings are helping them do so, but managing personalization in and of itself is a logistics challenge. Advanced supply chain management systems, customer relationship management systems, and Big Data are helping companies gain the visibility they need into their customers to make supply chain logistics efficient, cost-effective, and crowd-pleasing.
Customer Demands Affect Supply Chain Logistics
Certainly, supply chain logistics must run smoothly and efficiently enough to satisfy customers and suppliers. The challenge comes in when customer demands become taxing on the entire supply chain. In some cases, customers demand more transparency into the logistics processes themselves. They want to know where their orders are, how they are being fulfilled, and where the inventory is at each step of the lifecycle. Gaining and then sharing insight into each order and its associated item detail must happen in real time to appease customers, but doing so puts companies into binds when they don’t have such transparency themselves.
Benefits of Inventory Management in Supply Chain Logistics
Controlling the supply chain often comes down to managing warehouses and inventory quickly and easily. Creating dynamic, cost-effective, productive warehouse, logistics, and inventory processes is more feasible when supply chain logistics include best practices in inventory management. With detailed records of products and parts, organizations protect their bottom line and keep costs in check.
The best way to manage inventory and improve supply chain logistics is to implement inventory management practices that include tracking inventory with data on barcode labels and asset tags. Inventory management systems virtually eliminate the data entry errors and shipping mistakes so often associated with manual inventory tracking practices. Better yet, inventory management systems with barcode scanners add the level of transparency needed to meet customer demands and to provide personalized offers and answers to customers.
In fact, it is the insight provided by inventory management and tracking that helps supply chain logistics executives maintain effective supply chain visibility. With good supply chain visibility, organizations avoid shipment delays, supply chain disruptions, and revenue losses. Collaborative processes such as data sharing and demand planning across departments and business partners are reducing risk and closing gaps in visibility before they become issues.
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