One of the unexpected effects of success is that it can overwhelm a company and work against it when it comes to basic logistics and supply chain management. Core competencies that make a company a success might not be the ones that handle supply chains to receive raw materials for manufacturing, inventories of raw and finished goods, and manage the day to day pulling, packing, and shipping that is a company’s lifeblood. The principles of supply chain management need to be clearly understood.
Principles of Supply Chain Management
Logistics and supply chain management is based on three straightforward principles:
- A supply chain is based on the idea that every product reaching the end-user is the result of multiple organizations.
- These various organizations that comprise a supply chain are linked by the physical flow of raw materials and finished goods.
- The organizations in the supply chain are also connected by flows of information day today and over the longer term with the goal of maintaining the physical flow of goods and materials.
Gaps in communication flow can and will interrupt the movement of goods and materials, thus disrupting the supply chain. The most efficient supply chain has the fewest chances for these gaps to occur. By diagnosing where information gaps appear, it is possible to eliminate them and the interruptions to the supply chain.
Understanding Outsourcing
Outsourcing to a third-party logistics, warehousing, and distribution company is not off shoring. The jobs remain in America, but payroll, inventory, shipping, receiving, and other functions are given to a third party to handle. Third-party logistics in Phoenix allows smaller companies to take advantage of large-scale warehouse efficiencies without footing the expense. Using Phoenix warehousing and distribution saves time and money, also eliminating the labor-intensive and costly servicing of inventory by using a larger and more experienced workforce in place of overburdened on-site staff.
When to Reposition
If looking at the list made you question your own organization, it’s time to consider third-party logistics in Phoenix to handle warehousing and distribution issues so that your company can grow. American Western Distribution, a Phoenix warehousing and distribution company, provides trained staff and logistics managers to keep the flow of goods and materials moving, allowing your company to concentrate on your core competencies. When American Western Distribution covers your logistics and supply chain, you’re good to go!
