Tiếng ViệtSupply chain has always played an important role in the operation and development of businesses.
The international trade industry is a vibrant market, forcing businesses to accelerate the completion of the supply chain model to promote business activities and integrate with other businesses in the international market. .
So what is the concept of supply chain management? And what is the role of the supply chain for businesses? Let’s find out with Sinovitrans right in the following article.
1. Supply chain concept
We often hear about the supply chain, but in reality, not too many understand what this concept is? So first let’s learn the concept and definition of this term.
Supply Chain Management is a system or set of activities including: Organization, Information, People, Vehicles along with other resources. All of these resources will be directly related to the process of moving goods or services from the producer, supplier to intermediaries and consumers.
In the concept of supply chain, we will have to include manufacturers, suppliers of raw materials, transporters, warehouses, resellers, intermediaries and customers.
In addition, the supply chain model in a company will include departments such as sales & marketing department, customer care, accounting, logistics department, general department, etc. Each department will perform tasks and separate functions but will have a close link with each other in terms of information to achieve a common goal of predicting and fully meeting customer needs, improving business efficiency and creating profits for the company.
See also: What activities in the service logistics chain include
2. What activities does the supply chain model include?
What are the components that make up a supply chain model? A complete supply chain will include the following components and activities:
First, the supplier will be responsible for providing the source of raw materials for production. This is an important and indispensable component, but businesses also have to choose a reliable and reputable partner and supplier to optimize profits, reduce product costs and quickly solve resource shortage situations. bow
Second, the manufacturer will perform the necessary work to complete the raw materials from the supplier into products and services that meet the needs of the customer. The first two components of the supply chain are extremely important and are closely linked. Therefore, enterprises and manufacturers must always ensure human resources, equipment and information to limit possible incidents that affect the entire supply chain operations.
Third, the distributor will be responsible for bringing products, goods and services to each customer. However, for some products, distributors only deliver in large quantities. Therefore, distributors will often associate with retailers and intermediaries to bring products to consumers.
Retail agents will usually be grocery stores, 24/7 convenience stores, supermarkets, etc. These intermediary channels will help the business’ products be covered and retailed to each customer.
Finally, customers are the last thing that businesses and manufacturers need to care about. They are the people who will directly bring in revenue and directly collect products, goods or services.
Depending on the needs of customers from time to time, businesses can choose a suitable supply chain model.
See also: SCOR supply chain model
3. Other Supply Chain Roles
In addition to optimizing activities in the production line and bringing products to customers, the supply chain also has other roles that we need to keep in mind:
Capture and manage the activities necessary to facilitate the coordination of goods, reduce costs and bring the best service to the best end customer.
Improve the performance of the entire organization.
Increase market share and fully meet the business criteria of the enterprise.
Reducing the cost of products, bringing competitive advantages compared to other businesses in the same field in the market.
4. Current trends in Logistics and Supply Chain Management
Logistics and Supply Chain Management is currently one of the “hot” industries in the 4.0 industry. The main function of the Logistics industry is to research, develop, manage and provide transportation services in the production and business process for enterprises.
To talk more deeply, the logistics industry involves the entire chain of activities including planning and controlling the movement of goods. Including control of input and output materials, which are products and goods from the point of origin to the point of consumption.
According to statistics, the Logistics and Supply Chain Management industry is one of the industries with the most growth data in Vietnam in recent years. After the Covid-19 pandemic and countries are focusing on restructuring and developing the economy, the demand for highly qualified human resources of this industry is tending to increase sharply in order to ensure the operation apparatus for enterprises. businesses and serve the growing e-commerce industry.
Therefore, the job opportunities for students of this major are extremely attractive with an open working environment along with many opportunities for career advancement with high salary and good remuneration.
Positions that students can take upon graduation with a major in Logistics:
- Specialist in coordinating logistics services, coordinating vehicles and packages.
- Specialist in Business Administration, Sales & Marketing.
- Specialist in freight management, warehouse management, customs declaration, etc.
5. Conclusion
Above is information related to the concept of supply chain and other logistics services. Hopefully through the above article, Sinovitrans has helped you to have your questions answered and can be applied to manage your supply chain most effectively.
For more information, please contact:
Sinovitrans Logistics Co., Ltd
Ho Chi Minh Head Office: L001, Lot L, 1st Floor, Docklands Saigon, 99 Nguyen Thi Thap, Tan Phu Ward, District 7, HCMC
Hotline: (+84-28)-3873 1212
Email: Huangjunda.vn@sinotrans.com
Website: https://sinovitrans.com/