| > | | | | to be adjusted to meet it. The flexibility of the |
| Businesses need to stay competitive to be profitable. | | | | supply chain takes priority, and companies who want |
| Controlling the costs with supply chain management is | | | | to keep their production lines flowing need to design |
| just good business. | | | | and implement a formal logistics strategy to be ready |
| In today's difficult financial environment, companies | | | | to cope with any situation, allowing them to analyze |
| have to look very carefully at all aspects of logistics | | | | and be prepared for the impact of imminent changes. |
| in order to keep out of the red. More than ever | | | | They also need to be prepared to make any |
| attention to supply chain management is a factor | | | | necessary changes to ensure that their general levels |
| that has to be especially prioritized. | | | | of customer service are not negatively affected by a |
| Supply chain management, as it is defined, applies to | | | | sudden surge of "one off" business. |
| organizing a networked chain of interconnected | | | | Logistics organization is assessed at varying levels |
| businesses or branches within a very large | | | | with each of these levels capable of producing |
| conglomerate. Whatever their definition, these | | | | considerable savings in overheads if handled correctly. |
| satellites exist to provide either products or services. | | | | The levels that are vital in the supply chain are as |
| Supply chain management covers finished goods | | | | follows: |
| from the point where and when they originated in | | | | - Market Awareness: Know what your competitors |
| their final condition and up to and after they are sold | | | | are capable of producing, in which time scale and at |
| for consumption. Supply chain management also | | | | what cost. |
| spans the various and many aspects involved in the | | | | - Production Levels: Know what your accurate |
| movement and storage of raw materials before and | | | | production facilities are at any time, your current |
| during production as well controlling the movement of | | | | production commitments, in which time scale and at |
| work in progress, within a manufacturing environment. | | | | what cost. |
| This involves defining the levels of service levels at | | | | - Outsourcing: Knowing the extent of how |
| which a distribution company defines its level of | | | | outsourcing will affect both your production and |
| logistical organization to be at its most cost effective. | | | | supply chain management facility. |
| Despite the existing problems in our global economy, | | | | - Transportation: Does your company's existing |
| the supply chain theorem is still evolving. This means | | | | transportation facility strategies meet desired service |
| that a company may be required to develop a series | | | | levels? |
| of logistics strategies pertaining to production | | | | Maintaining a successfully implemented supply chain |
| schedules, international distribution or catering to the | | | | management strategy is of vital importance for |
| specific needs of a high volume client or clients. | | | | companies, dedicated to maintaining production levels |
| In today's volatile economy, the demands on a | | | | whilst maintaining service levels in today's fluctuating |
| supply chain may be liable to fluctuate from day to | | | | market. |
| day, and the entire logistics of a company will need | | | | |