Supply chains are a vital part of the economy in many countries. They give companies the means to produce, distribute and sell goods that meet various needs.
Although supply chains are essential for our society to function, most people don’t really know what they are or how they work.
In this article, our recruitment specialists explain the concept and aspects of the supply chain process.
What is the supply chain industry?
The supply chain consists of a series of steps to get products from manufacturers to consumers.
The supply chain begins with the production of a good and ends with its distribution. The intervening links can include supplying raw materials, transportation, financing, etc.
The supply chain industry is made up of interdependent processes that work together to meet the needs of consumers.
Aspects of the supply chain process
The supply chain involves three key concepts, which are called flows: product flow, information flow and financial flow.
Let’s take a look at these processes in more detail.
Product flow refers to the logistics aspect of the supply chain, i.e. transportation and storage of goods. Product flow includes transporting goods from the manufacturer to storage, managing storage and inventory, and transporting the final products to the store, business or customer.
People who work in logistics make sure that the product flow remains uninterrupted and the supply chain is well-managed.
Information flow is the aspect of the supply chain that plans and organizes the product flow to make sure it functions as well as possible. People who take care of the information flow aspect accumulate data and store it in a database in order to analyze trends and make improvements.
With the information they collect, they can predict how consumer demand will evolve and adapt their strategies accordingly. For example, the data can help answer questions such as “Is it better to order cheaper goods from Asia that will take longer to arrive, or more expensive products from North America that will be delivered faster?”
Information flow is vital for product flow to function efficiently. Professionals like import-export specialists play an important role in this aspect of the supply chain.
Financial flow encompasses all transactions with suppliers, partners, subcontractors and within the company itself.
It also includes administrative aspects of supply chain management, such as processing orders, scheduling deliveries, taking care of payments and reports, etc.
Sales administration and procurement professionals are the main positions associated with this aspect of the supply chain.
Fed Supply: a recruitment agency that specializes in supply chain
The supply chain is made up of many interdependent links that meet consumer demand by supplying goods. The three main aspects of the supply chain (product, information and financial) are all essential for it to flow smoothly. Companies need to hire qualified specialists who will ensure that their supply chain functions properly.
At Fed Supply, we help supply chain professionals find positions that will take their careers to the next level. We also help companies hire qualified candidates who will contribute to their success.
Don’t hesitate to contact us for more information.