A supply chain is a system of information, activities, technology, people, resources and organizations that are involved with moving a service or a product from the supplier to the customer. The purpose of the supply chain is to take a raw material or natural resource and transform it into the finished product that will be delivered to a consumer. An important part of keeping supply chains operating efficiently is the supply chain management. Additionally, one of the roles of this manager is to use the gathered supply chain logistics to learn how the process can be further improved.
The fact is that there are still far too many businesses that are not utilizing supply chain logistics to their full potential. This leaves a gap in the overall efficiency that could be reached by utilizing this in the day-to-day business activities.
Understanding Supply Chain Logistics
The supply chain is made up of a number of different phases, including scheduling, planning, storage, procurement, sourcing, reverse logistics, finished goods, customer service and more. When considering these different supply chain logistics, one of the primary functions they have inside a company is determining the efficiency of the process being used. While this is the supply chain managers job, by using the logistics that are available, understanding the process being used is much simpler.
Modern Role of Logistics
Up until recently, the entire role of supply chain logistics would be ended when the goods were given to the end customer. The term “forward logistics” refers to the movement of the materials and the goods from the starting point. However, modern companies use something that is referred to as reverse flow, which is commonly referred to as reverse logistics. This process begins where the forward logistics stop.
The entire purpose of reverse logistics is to be able to recapture the value of, or to facilitate the proper disposal of, the product, which will involve activities such as returning the item to the original supplier, reselling it, salvage, refurbishing, reclaiming materials, reconditioning, recycling, remanufacturing, landfill, and more.
The fact is that reverse supply chain logistics have gained much more significance with the growing concern of carbon footprints. There are a number of national regulatory issues that have forced a number of companies to use reverse logistics as an important and integral portion of their entire supply chain process.
When it comes to supply chain logistics, they can help supply chain managers make the processes that are being used much more efficient. This is essential in increasing the bottom line for businesses and organizations that rely on the efficiency and effectiveness of their supply chain.
