Supply chain: flow sinchronization is the key to efficient management

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The key to a good Supply Chain Management is the flow synchronization between the network elements. In this context SCM (Supply Chain Management) comes as a management system where companies deliver their products to customers in a interconnected network. Recent studies show that in Brazil, 23% of companies are impacted by a structured SCM methodology.

The SCM flows can be split into 3 main parts: the product flow, the information flow and the flow of money. The product flow includes the movement of goods from a supplier to a customer. It also concerns customer returns or extra service needs. The information flow centers on transmitting orders and updating the status of delivery. The financial flow is based on the system of credit, payments and ownership agreements.

Allog is specialized in international logistics management and believes that having its own system to keep the flow of goods, information and cash brings transparency, flexibility and control for the customer of logistics services.

The flow of international goods has many steps until the products leave the exporter and reaches the importer. The visibility achieved whenever a specialist is hired to manage your product offers transparency. Moreover, this choice adds value to the flow of information in your supply chain. The right financial control for supply chain operations is a key element for the importer to work in a more transparent manner.

Contracting specialized logistics in your sector and hiring a Cargo Agent that you can rely on from the very beginning in the logistics to store, pick and pack, to consolidate the cargo in its origin as well as all the cargo management including means of transportation so that the product reaches its final destination is the right choice to reduce lead time and risks. It also adds value to the operation and might cut costs and then we maximize the best-in-class resources for our end-to-end supply chain.

Supply Chain Management is the combination of “art and science” whose goal is to improve the way a company finds raw materials in order to make either a product or service and deliver to customers. Here are five basic SCM components:

Plan of Action

Plan of action is a strategic part of SCM. All companies need a strategy to manage all the resources that will meet the customer’s needs. A considerable part of SCM planning develops a set of metrics to monitor the supply chain. The goal is to be more efficient, cost-effective and to offer high quality and value to all stakeholders in the chain.

Suppliers (sourcing)

The next step for all companies is to choose suppliers of goods and services needed to create their products. The Supply Chain Managers must develop a set of processes including prices, delivery and payment together with suppliers (sources) in order to create metrics to improve relations. And then the Supply Chain Managers shall put all the processes together to manage their stocks for goods and services. And that includes to receive, verify and transfer of goods to the manufacturing facilities and then authorize the payment of suppliers

The Service of Orders and Demands

This is the manufacturing step. The Supply Chain Managers plan the activities they need for production, testing, packing and all the necessary measures for the delivery and it is the crucial time for metrics in terms of supply chain since it is possible to measure the quality, production and productivity of the service.

Integrated Logistics

This is what many SCM insiders call logistics where companies coordinate the receipt of orders and develop a network of warehouses, choose the multimodal transportation, design price logistics, focus on quality and lead time for the operation to be efficient in order to transport from one point to the other. Besides, they implement an invoicing system to receive payments.

Return or Reverse Logistics

This step might be a troublesome ingredient for supply chain in many companies. The Chain planners need to create a responsive and flexible network. The goal is to receive excessive and faulty goods from your customers and then offer support to those customers who might have had problems with delivered items.

>>> Read more – Internation cargo insurance: why buy it

Careful Planning is the goal. Understand how Peak Season might affect your logistics.

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