The words “logistics” and “supply chain management” can be confusing to those who really don’t know what they mean even though both terms affect almost every facet of our lives everyday. Simply defined, logistics means to get things where they need to be when they need to be. Time and place are major factors to logistics. On the other hand, supply chain management involves satisfying the customer and manufacturers needs by developing an organized way to manage the production and movement of goods. Most people believe that these terms are only associated with industrial equipment and factories, but in fact it applies to most everything, even something as simple as a pencil.
Look around you. If you see pens, papers, a computer, or a cup you are also looking at logistics and supply chain management. All of those items, even though simple in form, are part of a much more complex process. Take a look at the pencil. It’s made of wood, has lead, and an eraser. Each one of those aspects of the pencil has a trail of processes behind it. The wood has to be cut down, shipped, processed, shipped again, cut into a pencil, then packaged and shipped once more. All of those steps take careful organization and planning––services that logistics and supply chain companies thrive in. When these processes are well planned, it both generates profit for the manufacturer and drives cost down for you, the client. So the next time you pick up a pencil to jot down a note, think about what would happen if there wasn’t an organization involved in keeping the costs down to bring that pencil together. Hello $300.00 pencil!
Keeping things running smoothly and efficient is not just about shipping your product out on time. It’s also about keeping the business wheel balanced and alive. Businesses need to make a profit. It is all about equilibrium and supply chain management and logistic services that can help any business, big or small, achieve their company’s goals. Let Draco help you achieve those goals. Talk to us about your supply chain management processes today.