The logistics Jasa import china concept is one of today’s most challenging. Because of the increasing global demand for business, transportation, procurement and manufacturing have all increased dramatically. Major companies now focus on SCM to lower costs and are constantly looking for innovative strategies to meet consumer demand in order to gain competitive advantage.
2 Supply Chain Management Definition:
Supply chain management is simply the ability to have the right product in the right place at right time, at the correct measure, and in the right quantity. If a consumer finds a product on a shelf, but there is no tag for it, what do you think? Poor management of SCM is the reason. SCM, or Supply Chain Management, is the integration of procurement, suppliers manufacturers, distributors warehouse, transport and store to meet consumer demand.
3 Why Supply Chain Management Is Important?
Global competition is increasing and customers have many options and needs to meet their demands. What would happen if there was a demand for umbrellas during rainy seasons and you asked suppliers to deliver 20,000 umbrellas at the beginning and end of rainy season?
This scenario would be: supplier response recently after two weeks. Slowly start procurement. Then, start production. Finally, supply the goods at end of rainy season. In this scenario, the buyer could suffer huge losses.
Let’s think about how we can change the situation with an effective strategy. Consider the order for umbrellas that was placed at the beginning of spring and delivered at the end. The supplier response was precise, from procurement to distribution efficiently. It was also transported via freight within one week of the end of summer. Delivery was made on time and arrived within the 30th day of summer. Buyer was happy to receive the items on time. This allows the buyer to distribute the products through the distribution channel. With the right forecasted demand, the buyer can capture the market at the right moment and make money.
Manufacturers were once known as the drivers in the supply chain, as they had to respond quickly to customer demand. But now the customer is the driver of long-term competitive advantage. Companies are moving to customer-oriented strategies in order to meet customer demand. A shining example of this would be the Dell computer. To be competitive in the market, you must deliver the product on time.
4 Key Factors in Logistics Supply Chain Management:
We found that the key drivers of the different perspectives, including Globalization, Sustainability, Cost-awareness and Customers, Suppliers, Technology, and Transportation, were different from each other.
External forces (i.e. The external forces (i.e. Companies face huge challenges in meeting global requirements. Despite the fact that product barriers have been eliminated, products no longer consider domestic products. However, globalization has forced companies to constantly change their strategy and policy. Foreign investors are encouraged to invest now in many countries because of the benefits of globalization. This forces local companies improve the quality and creates huge challenges for them in the areas of procurement, manufacturing, transport, and distribution.
A company might develop a product in the US and then manufacture it in China. Then, they can sell it worldwide. Apple. This creates a challenging and complex task for the company. Apple made the strategic decision to create global manufacturing and engineering infrastructure in California and Ireland to keep its global market competitive. Apple’s global strategy allows them to capture large markets. This strategy allows Apple to be the number one innovative company in the globe.
Companies must be concerned about creating a sustainable chain. SCM management is difficult because of the constant variable pressures from regulations, geography, social-economic impacts, and international policies.
For example, green environment (i.e. The local government is constantly imposing regulations that affect the manufacturer. Producing and manufacturing in developed countries, such as Europe, is a huge challenge because of the strict policies and rules regarding environmental issues. This is in contrast to developing countries like Asia. The environmental issues in different countries make it difficult to produce vehicles in the automobile industry.
Cost awareness can be divided into four areas:
4.3.1a) Location:A convenient location with all resources is the first step towards creating a strategic network. Companies often struggle to meet customer expectations due to distance and cost.
4.3.2b) Production: Cost fluctuation is a critical issue in strategic decision making, such as which product to produce, what plant to allocate, and what supplies to purchase for production.
4.3.3c) Inventory:Inventory costs vary from raw materials to finished products. Inflation affects the price of everything, including buffer stock, safety stock and inventory days.
4.3.4.d) Transportation:30% of transportation costs are associated with logistics. This forces companies to consider all distribution channels, including air, road and sea. Sea shipment is faster, more reliable and expensive than air shipment.
Customers are the most variable variables that can affect demand. Customers are the most unpredictable variables to determine demand. They can change their expectations, make new purchases, or modify an existing product. This will all help you develop a customer-product strategy. Apples started its business on computers, but they understood the needs of consumers and launched the iPhone, iPad, iPod to satisfy them.
This example provides an excellent learning tool: “How the company understands its customer to gain competitive advantage” which allows us to consider what strategy they are using. Apple strategy focuses on the iPhone and iPad products (i.e. Outsourcing is the norm for parts. Apple produces very few components. Apple supplies hardware from contract manufacturers and software from millions of software developers to create various applications for the devices. This reduces the cost.
The supplier’s motivation is crucial for quality, cost, and delivery expectations. They have greater influence over the supplying item. Dell’s direct strategy, for example, requires that orders are placed directly from customers. Dell’s pull strategy is to build computers according to customer specifications and deliver within the time frame. Dell required suppliers to maintain inventories within 15 minutes from the manufacturing sites in support of this model. Almost all products can be ordered. The factory planning system sends two hourly a message to suppliers that details the parts they need. This means that there is virtually no inventory of products or parts in the factory. This can only be achieved because of a healthy relationship with suppliers.
Customers are becoming more tech-oriented thanks to the technology. They now focus on online trading, online shipping and online payments, online information, virtual chatting, and online information. Customers are more open to receiving information and answers about their choices, preferences, and technology has an even greater impact. The Dell example could show how technology can impact business and increase revenue. Success in direct selling strategy Dell depends on customer willingness to be more connected and to help them develop a cost-effective quality product strategy.
The most important component of business logistics systems is transport system. Transport accounts for around one-third to two-thirds of all logistics costs. It is not enough to have the right transportation. Companies must understand how to manage their supply chain to allow goods to flow from one place to the next and ensure timely delivery. Unorganized supply chains can be a problem due to insufficient transportation systems, labor force, laws and regulations, as well as uncategorized rooting systems. Without a reliable transportation network, supply chain activities such as delivery to the market will not be possible.