SUPPLY CHAIN MANAGEMENT
The principle of ‘Survival of the fittest’ stands valid in the present global economy characterized by the changing business dynamics. Every company needs to struggle for the existence & growth under such a competitive environment. One best way to create your niche and perform in the competitive market is to offer best quality of product at reasonable rate, which suits well to the requirements of target customer. To impart a feeling of trust in the minds of consumers and provide quality product at reasonable price manufacturer has to bring shift in his emphasis in the Supply Chain Management (SCM). Thus, cost reduction is the main managerial mantra. There are various other ways also for strategic cost management techniques available like Supply Chain Management (SCM), Business Process Re-engineering (Value Re-engineering), Total Productive Maintenance to reduce cost. Of all these, definitely Supply Chain Management is prominent tool to reduce the cost and is the most efficient one.
Supply Chain Management has become a very powerful technique as it increases the responsiveness to the changing business conditions and enhances the competitiveness of the organization in the market. LGOA helps you in this process by rendering professional services and managing your costs. We will help your business stand out in the market. In today’s intense competition, and increasingly global economy, to survive and grow, organization must enhance their market responsiveness and become cost competitive. The Supply Chain framework is a method of breaking down the linked set of value creating activities from basic raw material/component supplier to the supply of the end product to customer/consumer. A supply chain is a business process that creates a link between manufacturers, retailers, customers and suppliers in the form of a chain to develop and deliver products as a single virtual organization of skills and resources. Supply chain management is actually the process of synchronizing the flow of physical goods and their associated information from the production line of low level component suppliers to the end consumer. LGOA has been working in this field from so many years and as per the reviews of our clients, we have been very effective in managing their cost and hence rendering terrific Supply chain management services.
This is a method in business that includes planning, controlling, data collecting, carrying and storing, other services, communication services and network which enhance product quality and promotes modifications as well as further developments from the beginning of a productivity line to the end to ensure that customers at the end will receive the best of all. We at LGOA follow customer driven approaches and ensure that our customer is contented with our performances. Decisions taken to ensure proper Supply Chain management can be classified into two categories – Strategic and Operational. If we talk about the strategic approach, the decisions are made typically over a longer time horizon. On the other hand, operational decisions are short term, and they usually focus on activities over a day-to-day basis. The four main areas to be considered in the proper functioning of the SCM are:- Location decisions, Production decisions, Inventory decisions, Transport decisions.
Location decisions play a vital role as the geographical placement of production facilities, stocking points, and sourcing points is the first step in creating a supply chain. The location of facilities involves the allegiance of resources to a long-term plan. Once the size, number, and location of these are determined, then the possible paths by which the product flows through to the final customer decisions become easy. Although location decisions are primarily strategic, they also have implications if we talk on the strategic level. Production decisions have a big impact on the revenues, costs of the firm and impact their performance in the future. These decisions include what product to produce and which plant to produce them in, allocation of suppliers to plants and their further details. Other considerations include workload balancing, and quality control measures at a production facility. Inventory decisions include how the inventories are being managed. Inventories exist at every stage whether we talk about the raw material, semi-finished or finished goods. They can also be in process between Locations. Their primary purpose is to buffer against any uncertainty that can come in the supply chain. The efficient management of the inventory is critical in supply chain operations. It is strategic in the sense that top management sets goals. If we talk about the Transportation decisions, these are very closely linked and somewhere dependent on the inventory decisions, since the best choice to which mode is to be taken is often found by trading-off the cost of using the particular mode of transport with the indirect cost of inventory associated with that mode. Customer services and geographic location play vital role in such decisions. Since transportation costs are more than 40 percent of the logistics costs, operating efficiently makes good economic sense. Our company LGOA is rendering the warehousing services from the past so many years and by taking proper care of our client’s requirements, we are excelling in doing so.