Supply chain and logistics have a symbiotic and necessary relationship when efficacy and reliability is taken into consideration. Consisting primarily of organisations, up-to-date data, resources and information delegated to the journey of manufacturing a product, to the distribution to its intended destination/customer.
As time has gone on, supply chain and logistics have become a complex and intricate affair, going from a relatively straightforward set of principles and steps to a globalised and ever-changing marketplace that requires a little more finesse and consideration. For companies that depend on getting products and goods to consumers as quickly and efficiently as possible, a strong relationship between supply chain and logistics management sectors must be present. This allows for more cohesion and efficacy.
The Utility of Effective Supply Chain & Logistics
You can’t have one without the other, and for effective business to be conducted, they intersect in increasingly different manners and in different capacities as time goes on. There is some blurring of the definitions between supply chain and logistics because of these intersections. While the former refers to the overarching models that communicate and allow a competitive advantage to be achieved, whereas the latter refers to the more physical movement and storage of goods and services within the former.
For a business to remain competitive in todays market and demands, there should always be special attention being paid to supply chain and logistics management and appropriation, ensuring a clear line of communication is maintained and security is bolstered accordingly.
With so many variables that can arise or impact the intricate systems that encapsulate supply chain and logistics management, it’s vital to employ the services of trustworthy agents to ensure there is a good degree of flexibility and adaptation.
Common Challenges Facing Supply Chain and Logistics
Due to the typically internationally dependent aspects of supply chain and logistics, there are some common issues that tend to pop up naturally over time.
One of the more commonplace challenges that manifest themselves in these systems is the lack of transparency throughout the groups. This is often caused by legacy systems that are opaque at best, and do not allow for proper data analytics and good progression tracking. These days especially, there is an absolute need to have access to as much real time and efficient data as possible, primarily to identify sections where management needs to hone focus on to achieve greater levels of efficiency and reliability.
Poor Relationship Management
Poor customer relations are one of the biggest detractors of growth for anyone dealing with supply chain and logistics protocols. Being as fast as possible and meeting the unprecedented modern demand is one of the cornerstones of modern business practices. Establishing norms and maintaining customer satisfaction is a time-old tradition of business, and with so much competition on the cards, it is more vital than ever to keep the ever-fleeting relationship in some form of tactful condition.
Goods Wastage & Inefficacy of Movement
Efficiency is certainly the name of the game when it comes to goods and services, regardless of the industry. Commonly it is a small reaction that can cause ripples throughout the business’ efficacy and efficiency. For instance, if there is a delay or loss of reporting data or capability, the whole system grinds to a slower pace which will inevitably produce holdups on all areas of the supply chain and logistics systems.
The relationship may change over time, but they will not stop being vital for each other’s survival. As technology evolves, the reliance on one another will manifest itself more clearly and uniquely.