Supply chain management (SCM) is one of the essential pillars to the success of any company, especially in the food industry.
SCM controls all the activities necessary to deliver high quality perishable foods to consumers, in safety and at the right time.
In this article, we shall explore more about the supply chain, its functions, its importance and how you can optimize its management in your company. Check it out!
What is supply chain management, more specifically?
Supply chain management is the set of practices involving the management and the coordination of all the stages linked to the production and distribution of perishable foods, from the initial supplier thro to the end customer.
In other words, we are talking about the management of fundamental materials, information and finance so that the products arrive at the consumer more efficiently and as economically as possible.
In everyday terms, SCM fulfils the following stages:
- planning — the first step is to plan the production of goods and the acquisition of raw materials needed to meet the demand of the consumers;
- acquisition of materials — this involves the search for and negotiation with suppliers to guarantee the delivery of the necessary materials within the established time and cost;
- production — this stage has to be very well organized to avoid delays and loss through waste. The planning of the production also requires the management of stocks and the forecasting of demand;
- storage — after production, the foods have to be stored in environments with temperature control until they are sent to the clients;
- distribution — the transport and distribution management is linked to the delivery of the products to the end clients, which must be done quickly and economically;
- relationship management with consumers and suppliers — maintaining good communication with suppliersand clients is an essential element of the care needed to keep the supply chain under control.
Understand how supply chain management (SCM) makes the difference for the foods industry
Supply chain management is extremely important to the efficient working of a company, as it directly affects operational costs, the quality of the end product and customer satisfaction.
Below we explain more about the importance of SCM in various key areas.
Reduction of costs
The efficient management of the supply chain enables the reduction of operational costs. This benefit occurs because, by optimizing processes such as procurement, production and distribution, it is possible to reduce loss through waste and improving the use of resources.
Furthermore, knowing how to manage the stock helps avoid any lack or excess of products, which can generate additional costs.
Efficiency of the processes
Efficiency is another important benefit of SCM. When the company is able to group processes, from the procurement of raw materials through to the delivery of the perishable foods, it is possible to reduce the time cycle and increase productivity.
Thus, the products arrive at the consumers more quickly, and the company is able to meet the demand more effectively.
Competitive advantage
Companies which manage their supply chain efficiently are able to stand out in the market, offering products of better quality, at more competitive prices and with faster delivery.
The competitive advantage comes from the capacity to adapt to the market changes, to respond to unforeseen circumstances effectively and to meet the needs of the consumer faster and with greater precision.
Integration of processes
The integration of the procurement, production, storage and distribution processes is one of the pillars of supply chain management. When these processes are well coordinated, the company is able to obtain a clearer view of their operation and to take more assertive decisions.
Furthermore, integration facilitates the communication and the collaborative work between departments and commercial partners.
How should the supply chain be managed?
Everything starts with the planning and the choice of good practices. Some tips for implementing effective SCM include:
- good choice of suppliers — do detailed research on and select suppliers who can deliver quality products within the time periods established;
- automate processes — use technology to automate the stock control, the communication with suppliers and clients, and the monitoring of orders;
- invest in logistics — have well structured logistics, with efficient transport and storage ensuring that products arrive at the end client within the stipulated time;
- monitor performance — accompany the performance indicators to find out which areas need improvement.
Find out about our supply chain solutions
At Emergent Cold LatAm, we understand the challenges companies face in managing the supply chain. Thinking on this, we offer innovative customized solutions to optimize logistics and the supply chain management.
Our services are designed to increase the operational efficiency and to reduce costs, guaranteeing that your company is always ready to attend to the needs of the market. Find out more about our solutions:
- storage and distribution — we have a modern, strategically located infrastructure to facilitate the storage and distribution of products with efficiency and security;
- transport and shipping management — our transport services are managed by specialists using advanced technologies to guarantee fast and precise deliveries. The transport managementincludes the optimization of routes and consolidation of loads, which reduces costs and improves delivery times;
- stock management — with the latest generation warehousing management systems (WMS), we offer full control of the stock levels to minimize waste and improve precision of the demand forecasting;
- added value services — besides the services of storageand transport, we offer added value solutions such as packaging, labeling and picking to add even more to your supply chain;
- consultancy and customized solutions — our team of specialists works together with clients to develop customized solutionsto meet the specific needs of each business, promoting efficiency and cost reductions.
