A supply chain is a network of companies that work together to produce a product or service. This network includes suppliers who produce the goods or services, manufacturers who make the products, and distributors who deliver them to customers. The goal of a supply chain is to ensure that products reach customers in a timely and cost-effective manner.
A strong and efficient supply chain facility is essential to running a successful business. It not only helps to ensure that products reach customers on time, but it can also save money on costs such as inventory and shipping. Here are some ways in which a strong supply chain can impact business operations:
1. Reduced Inventory: A well-functioning supply chain can help minimize the amount of inventory that a business needs. This is because it can quickly and easily bring new products into stock when they are needed. It can also help to reduce the amount of time that a business spends searching for products that are no longer in stock.
2. Reduced Shipping Costs: A well-functioned supply chain can help to reduce the amount of money that a business spends on shipping expenses. This is because it can help to distribute products throughout a network of suppliers quickly and efficiently. This network of suppliers can also be used to source unique or hard-to-find products.
3. Reduced Manufacturing Costs: A well-functioned supply chain can also help to reduce the cost of manufacturing products. This is because it can help to streamline the process from start to finish. It can also reduce the number of mistakes that are made during manufacturing,