Nowadays, understanding how the supply chain works and the benefits it offers is of vital importance. In this article, we will simply explain the purpose of using supply chains, the key components to carry out an adequate process and the benefits associated with its execution.

Supply Chain Basics

The supply chain refers to a management technique for the processes that control the flow of goods and services in companies. Basically, companies use this technique to acquire services or products efficiently. The process covers the projection, implementation, management and monitoring of each operation that occurs within the supply chain, with the objective of generating a competitive infrastructure where the supply and demand of goods and services are synchronized.

Supply Chain Advantages

The supply chain also provides companies (customers) and suppliers with the possibility of improving efficiency in the acquisition of products and services, with multiple benefits that include:

• Greater competitiveness: By implementing an efficient supply chain, companies can position themselves more competitively in the market.

• Cost reduction: Optimizing sourcing processes can lead to a significant reduction in operating costs.

• Multiple options: A well-established supply chain offers companies a wide variety of supplier options, allowing them to find the best alternatives in terms of price, quality and service.

• Reduction in times: By streamlining acquisition processes, the supply chain contributes to reducing delivery and response times, which improves the company’s overall efficiency.

• Consolidated supplier network: A strong supply chain allows for the establishment of long-term relationships with reliable suppliers, ensuring greater stability and availability of supplies.

• Increased profitability: By improving efficiency, reducing costs and optimizing processes, the supply chain can directly contribute to increasing the profitability of companies.

• Security and confidence in processes : By implementing appropriate controls and monitoring, the supply chain provides greater security and confidence at each stage of the process.

• Process optimization: By constantly analyzing and improving sourcing processes, opportunities can be identified to optimize them and achieve greater operational efficiency.

• Better information management: The supply chain requires effective management of information and data related to suppliers, inventories, orders and deliveries. This allows for more accurate and timely decision making.

It is necessary to highlight that it is of utmost importance to carry out this process correctly, analyzing all the positive and negative factors that involve the company, in order to obtain an optimal result, offering and receiving the best option that benefits the agents who intervene in these processes.