Understanding Supply Chain Planning Systems and Their Benefits

by | May 10, 2019 | Supply Chain Management

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Every product bought by consumers goes through a long line of multiple organizations and companies. These steps and processes are what is known as the supply chain. A company that is able to manage and implement these procedures has the ability to gain an advantage in customer satisfaction and the production of quality products. To profit from these advantages, one must have the best system possible in place. In this blog, we will discuss more of the benefits supply chain planning systems can provide to companies and help you understand why they are imperative to your needs.

Outside the Box

Although production processes have always been centered around supply chain planning systems, many businesses haven’t realized they were implementing the processes. This is because most companies focus on only the happenings taking place on site. This often causes issues with production and a disorganized supply chain that could be harmful for the bottom line. Understanding the flow of the supply chain and implementing the best system possible can help avoid these types of issues and keep a company running smoothly for years to come.

The Flows

A good supply chain planning system understands the two flows that link all of the parts of the chains. These flows are known as information and physical. Physical flow deals with the actual movement of products. These are the visible parts of the supply chain. Information flow is a bit different. This allows the various parts of the supply chain to communicate with one another on goals and hopeful outcomes of production. This is where the day-to-day flow of materials is managed and overseen.

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