The role of technology in logistics
Supply chain management is the management of the flow of goods and services, including the movement and storage of raw materials, work in progress inventory, and finished products from the point of origin to the point of consumption.
Key components of supply chain management:
Planning: involves forecasting demand, developing production plans, and determining inventory levels.
Procurement: Identify and select suppliers, negotiate contracts, and establish relationships with suppliers.
Manufacturing: Processing raw materials into finished products, including production processes and quality control.
Logistics: Manage the flow of goods, including transportation, warehousing, and distribution.
Delivery: Ensure efficient and timely delivery of products to end customers.
Return: Handling product returns and reverse logistics.
Supply chain activities:
Procurement: Obtaining raw materials, components, or finished products from suppliers.
Production: Manufacturing or assembling products based on demand forecasting.
Distribution: Efficient transportation and storage of finished products.
Inventory management: Balancing the cost of holding too much or too little inventory.
Transportation: Choose the best transportation method and route to transport goods.
Demand forecasting: Predicting customer demand and adjusting supply chain processes accordingly.
