Supply Logistics is the branch of Business Logistics that takes care of planning, implementing and controlling the flow of raw materials and inputs, both during movement and storage of such items. It is this sector that makes it possible to meet deadlines for the delivery of goods, ensuring, in a rational way, the supply of the production line and the replenishment of stocks for the sale of the products offered for sale.
But before we continue, you need to understand the basics:
- raw material : all material that undergoes alteration to be transformed into a product;
- input: each component used in the production of goods. This can be a material, a machine, or equipment.
This simple division already reveals the importance of Supply Logistics. In other words, it is what allows the formation of a Supply Chain.
The damage caused by poor management of this branch of Logistics is serious, according to the Linkana website :
- stoppage in production;
- lack of goods to sell;
- need for emergency purchases, generating extra costs;
- delivery delays (at best);
- bankruptcy (in the most serious cases).
But when there is good management of Supply Logistics, there are several benefits that the company obtains:
- improvement in the structuring of processes;
- greater agility in different sectors;
- cost reduction, through a good relationship with suppliers;
- optimization of resources, due to the improvement of the structuring of processes and the prevention of failures in production;
- improvement in the proper storage of inputs;
- reduction of material losses;
- reduction of risks of accidents with employees, due to improper handling of supplies, such as chemicals or sharps;
- reduction in production failures;
- increased productivity through synchrony between sectors.
And how does Supply Logistics work? According to the Nuvem Shop website, we can say that its process involves 3 steps. Check out:
- “ Entry : in this step, the necessary supply enters the company as raw material, after which it is taken to the warehouse or stock;
- Goods in process : in this case, the raw material undergoes its transformation process and is finalized to be commercialized;
- Delivery to the consumer : the product reaches the end customer.
Planning this process may be considered unnecessary for some people, but it is quite the opposite. When working with supply logistics, it is possible to have much more organization and management of the acquisition of materials and, thus, avoid unnecessary expenses and the decision-making becomes more assertive”.
After delivering the product to the consumer, it is still necessary to have the customer’s feedback, to know what he thought, what he needs and how much he is willing to pay for the ordered item. This is fundamental to define the company’s profit margin.
To optimize your company’s Supply Logistics, some measures are advisable. See below tips given by the site Mais Polimeros:
- “Mapping the company’s processes, from the beginning of production to delivery. In this way, it will be possible to find the strong points and, mainly, the weak points that need to be optimized.
- Implement software and other logistics management technologies that make it feasible to track supplies in stock.
- Train employees in all areas, instructing them on the essential integration between the company’s productive sectors, primarily between the supply chain (Supply Chain) and logistics.
- Create KPIs to measure operational performance. Only then will you be able to currently follow the results. At this point, it is important to prioritize metrics of customer satisfaction and loyalty, based on evaluations made by them, using forms.
- Keeping in constant analysis and continuous improvement, always according to the main KPIs, changing important points of the logistics operation when necessary.”