Supply Chain Management (SCM) is at the heart of many types of businesses. Therefore, such companies are highly dependent on how smooth the supply chain is. Maintaining a sound supply management strategy is complex, as it involves numerous processes that require planning and constant monitoring.
What is supply chain management?
SCM is a complex process that involves organizing and delivering products from the supplier to the end user in the fastest and most efficient way.
The role of logistics in supply chain management
SCM management is often confused with logistics management. However, logistics is only part of the supply chain. In addition, transportation is one of the key components in the entire product flow and it is more like the element that holds each piece of operations together. In this way, a sound logistics strategy can help improve efficiency and ensure the long-term operation of your supply chain.
How effective logistics can help SCM
One of the major challenges in an efficient supply chain flow is risk management and sustainability. All efforts are aimed at balancing quality and final price, so for many companies it becomes a struggle to reduce costs while providing good service.
For an efficient chain, companies are working to create reliable transport solutions. The transport network allows the company to reduce shipping costs and improve service levels with minimal disruption to any processes. A smooth transportation process reduces delays, provides an overview of freight traffic and saves your company's budget.