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Supply Chain

07 Jan 2021
2 min read

In a connected world where we can get a product or service that makes our business easy, here where the supply chains roles come in, so the question that came to our minds is what is the supply chain, and how it can help in today's business?

The Supply chain is defined as a system of people, processes, and technology that engineered and managed together in order to produce or deliver the desired products or services to the customers at the right time, location, conditions and considering the lowest cost.

Although there are many objectives subjected to the supply chain, the following are some summary points.

1. Building a model that aims to develop a system that achieves lower cost, high speed, and efficiency compared to other companies so it would increase profit and create new values.

2.  Balancing the related departments' objectives (e.g., sales/warehousing conflicts in terms of having inventory on a permanent basis to ensure customer satisfaction, versus the cost of storing these products if it is not been ordered on the other hand).

3.  Developing a strong relationship with suppliers in order to fulfill and smooth customer’s needs.

4. Managing and sharing information between relevant parties. (ex. Sharing product balance with the supplier may reduce the probability that the product will not be available when demand from customers suddenly increases.)

5.  Increasing profits, reducing cost/and creating new values as a result that can be made directly by changing or modifying one of the above points.

Studying these objectives will lead to the continuous improvement of the supply chain which eventually contributes to the overall business.


Mohammed AlNahdi

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