When to sell your supply chain: A guide to the business of supply chain manager
A supply chain is one of the most critical parts of a company’s business.
A company needs to know where all its goods and services come from and how they’re used, and it needs to be able to deliver them to customers.
It needs to have a reliable supply chain to supply those products and services.
But that’s not always easy.
In fact, it’s one of those issues that can seem like a daunting task to even the most experienced supply chain managers.
To understand how to tackle these challenges and to keep your supply chains running smoothly, we spoke to several of the top supply chain executives and business analysts to get their take on what it takes to manage your supply operations.
What is a supply chain?
A supply chain involves the whole supply chain, from the farmer to the consumer, from your manufacturing plant to your customer’s house, and beyond.
The supply chain can be as simple as a warehouse or distribution centre, or as complex as an entire supply chain with many components.
A supply company is in charge of all those things, from getting products to your end users, to keeping them in stock, to managing logistics, and so on.
In most cases, a supply company will also be in charge and operating your manufacturing facility or distribution center.
A supplier who doesn’t have a supply business has a problem, says John Auerbach, president of Auerbaum Consulting Group.
They’re going to have to be prepared to deal with unexpected circumstances, such as a sudden change in demand or a supply shortage.
But they’re also going to be more efficient, and they’re going have more flexibility in how they use their resources.
The more people involved, the more profit they can make, Auerach says.
But there’s one thing you need to keep in mind: When you think about a supply system, you have two different concepts to consider: an operational and a logistics system.
An operational system is a business that’s running supply chain operations in a given location, such a an assembly plant or a distribution centre.
The logistics system is the system that manages all the logistics associated with the operation.
These two different aspects of the supply chain are often at odds.
Operational systems need to have their own headquarters, but the logistics system needs to run in the same place all the time.
An operating system is much easier to manage, says Michael Wernick, president and CEO of Wernicks Consulting Group, which provides supply chain analysis services to more than 30,000 businesses.
The key is that they have a single set of rules, he says.
“That’s a big difference,” says Wernicking.
Operators and logistics systems work hand-in-hand, he adds.
The operating system takes orders from the supplier, processes and distributes the products, then processes the payments from the customer to the suppliers.
The logistical system processes the transactions and delivers the products.
The system is called an integrated supply chain.
How to manage logisticsThe logistics system, on the other hand, needs to take orders from multiple vendors.
In that scenario, the logistics team must be able not only to do logistics for the supply company but also to manage the logistics for each vendor, says Wierick.
The team also has to take in the payment from the vendor and process the payment to the customer.
In the case of a logistics team, that means it needs a logistics coordinator, says Chris Epperson, chief operating officer of P.M.W., a supply management company.
The coordinator handles all of the logistics related to the company’s operations.
That coordinator is responsible for the logistics manager’s job.
“They’re the eyes and ears in the supply chains,” says Eppson.
“Their job is to monitor and manage all of those things.”
Wernickers Consulting Group has helped more than 1,000 companies achieve this goal.
In its latest study, the firm found that in addition to providing a smooth supply chain operation, an integrated logistics system will also lead to lower operating costs.
Wernowers report on logistics and supply chain issues has been published by The Management Group and is available online at the managementgroup.ca.
You can also read it in French.
Can you help a supplier deliver your goods?
Yes, we can.
Yes we can help you deliver your products.
No, we cannot, says Paul LeBreton, vice-president of global marketing at Olin Corporation.
The company does not provide logistics support for its customers.
If you need help, ask your logistics partner, says LeBreron.
In some cases, the company will even provide you with a shipping quote.
What happens if your supply company goes under?
Supply chains, especially those that supply goods directly to consumers, often go under at some point.
If your company goes through a supply disruption, your supply will be delayed or even eliminated.
So, what you