The careful supervision of a particular set of connections and connecting services
of an organized business dealing in manufactured goods and even raw materials supplied to clients is known as Supply Chain Management. Supply and chain logistics are employed by almost all companies that deal in tangible goods. The Supply Chain Management is run by computerized systems that provide a highly detailed and microscopic insight into the business. This is thanks to the modern technologies such as the Global Positioning System (GPS), internet connectivity etc.
The main function of supply and chain logistics management includes the following:
Inbound transportation
Outbound transport services
Storage space and warehouse services for goods in transit.
Fleet Management
Network and Route Designing
Clearing duties and taxes such as customs brokerage
Managing third party logistics providers
Completing Client Orders
It is ideal to have a well organized Supply Chain Management structure in place so that there is no space left for friction and human error. Keep different departments for each and every activity which functions independently and in a decentralized format. At the same time there has to be a well coordinated approach employed by the various departments with respect to other departments so that they can work in harmony. Only then can the company complete order without any damage, delays or other such issues.
Today, all these activities are carried out with little human participation. For example, let us consider a helmet manufacturing company based in the United States of America. A customer based in England places an order for one of their products through the company website and makes an online payment using his credit card. This order is then notified to the marketing department and also to the bank for clearing the online transaction. On clearance of payment, the helmet is dispatched using the logistics services employed by the company. This company then loads it aboard a ship or an aircraft depending upon the mode selected by the company. Within a matter of twenty four to seventy-two hours the product is delivered at the doorstep of the customer. And all this is accomplished without any human interference except loading and unloading.