What is the Supply Chain?

The Supply Chain is a process, composed of a series of activities and actions that deal with the sale of a product.

At first glance, it seems simple, but this process includes an infinite number of phases ranging from the control of obtaining the raw material, manufacturing or production. Not to mention the channels of communication with the final customer and the transport or delivery of the product. Doesn't it look so simple now?

For that reason, it is necessary to attend to a series of keys that can help us in this process and that we are going to see from Alerce-Group Alerce-Group

Within the Supply Chain, there are a number of members. Let's see them!

1. Manufacturers
   The first fundamental component of this process is obviously the manufacturer of the product. It is the person who transforms the raw material into the product that will end up being sold.

2. Suppliers
   Suppliers are responsible for the supply of the raw material as well as the final distribution of the product to the end customer.

3. Client
   The delivery of the product ends at the end customer, who has purchased the product.

Essential Elements in the Supply Chain

In order for the supply chain to flow properly between members, three key elements must be addressed within the entire process.

1. Transport
   Transport is one of the most important issues in logistics management. Whether for the transport of manufacturers or suppliers, as well as the distribution of the product to the customer, the transport must be efficient.

2. Communication
   Another fundamental element for the correct use of the supply chain is communication, for which channels must be enabled among the different actors in the process that do not delay the process.

3. Technology
   Technology is the third element that makes the difference between a well-managed supply chain and one that is not. Thanks to technology, we have greater control over the entire process, where the material is and at what stage it is.

Tips for Improving the Supply Chain

If you're looking to improve the supply chain, you need to look at these stages of the process.

1. Inventory Management
   Always keep in mind that you have to adapt to the demand of the product. For this reason, it is always necessary to ensure the total availability of your product, for which it is necessary to follow a scrupulous process of identification, coding and classification of your available product.

2. Transport optimization
   Transport is one of the biggest business headaches. Therefore, a study must be made involving different parts of the transport, from transport to our warehouse, to distribution to each of our customers. In this sense, technology is key, different software such as Alertran can be very useful.

3. Storage Optimization
   The storage of goods and products can, if properly managed, save significantly the cost of the company. For this, the location and correct designation of the different storage areas are the key. Tools like Tamesis can help you improve the storage of your business.

Taking all these aspects into account, improvement in the supply chain is more than assured.