A chain has many links. If one is missing, the chain's capabilities are shortened. Supply chain management services have elongated in the modern world of retail and shipping. Companies offer more services than before. Customers are also feeling the heat in their respective industries. It pays off when a logistics firm is responsive to their needs.
Supply Chain Management Benefits
An SCM company often starts out as a warehousing or shipping firm. At one time they handled a single end of the job and left the other part to different experts. While a firm created and marketed its goods, a warehouse stored them, and the shipping company sent goods where they needed to go. The retailer or manufacturer might have even handled everything itself.
The problem with multiple service providers is lack of continuity. With multiple partners, there is also room for more error and misunderstanding. As normal as this is among humans, the business world is unforgiving. Moreover, industry moves faster and goes further. There are more pieces to consider.
While you do not want to have several companies working on different parts, it is also not advisable for a firm to absorb every job and distribute them to employees or create new departments. This is expensive and takes focus away from whatever a firm is selling.
A supply chain limits the number of companies involved, but allows a firm to concentrate on business. The SCM firm can handle distribution to local, national, and overseas clients. It will look after warehousing and stock accounting. Clients can order goods and have the stock updated right at the warehouse. Clients also have access to their accounts via computer so they know when to order more products or when to consider removing old stock.
Supply chain employees record stock, track shipments, and package goods for delivery. Give them the order and they repackage large loads of items to create customized shipments for buyers. These new shipments will be sent where you need them to go. Choose to have goods sent out immediately, or save money by waiting for the SCM firm to fill an entire cargo box with items from several clients with goods for the same destination.
If you are reading this on any blog other than The Dependable Companies or via my RSS Feed, it is stolen content without credit.
You can find me on Twitter via @LogisticsDan
Come and visit our blog at http://Blog.GoDependable.com