3 Important Things You Should Know About Supply Chain

The common strategy that frequently used by a company to improve competitiveness is to boost and streamline the Supply Chain system. This term refers from the upstream to the downstream system of producing goods or services of a company.

Stated below are the 3 Important things you should know about the Supply Chain:

The concept of Supply Chain

In general, the concept of the supply chain is all activities involved in the process of transformation and distribution of an item or product. This system consists of a variety of things involved between the preparation of raw materials, production processes, to the distribution of products to the hands of consumers or customers.

Regardless, if one of the supply chains is facing a problem, it will have an impact on the other system. Therefore, good management is needed to ensure the entire chain could work effectively.

The component of Supply Chain

The component of the supply chain consists of three things; which is Upstream Supply Chain, Internal Supply Chain, and Downstream Supply Chain.

First component is a system where everything related to raw materials is processed, while the second component is the process of producing raw materials into finished products until the product is ready be marketed. However, the last component is related to the product delivery procedure from the company to the consumer, which is no less important.

The Process of Supply Chain

Everything involved in Supply Chain has a connection between one another. The process itself is divided into various series as follow:

1. Customers

Most of the companies place customers as the first connection in the Supply Chain system. It is because the customer submits the order and the company executes the product. The next step is the customer buys the product offered by contacting the company's marketing department.

2. Planning

The planning department of a company will prepare a production plan to produce the products needed by a customer when a customer makes an order. It is this planning section that designs everything related to the production process.

3. Purchasing

When the planning part is done, the purchasing department will prepare the various materials needed. In addition, everything related to the production process will also be made based on existing requests from the planning section.

4. Production and Distribution

If the components have been prepared and are in accordance with the standards and quality of the company, the production process will also be carried out. After the products have been finished and checked, they will be sent to the warehouse or storage area. The distribution process itself will be carried out according to the specific schedule.

5. Storage

Although storage includes in the last part of a Supply Chain for a product, this part should not be underestimated, since the storage room or warehouse is also the determinant of the durability and security of a product. It has to be ensured that the company never runs into loss.

This is why the choice of storage space has to be done carefully. One of the best warehouse recommendations in Indonesia is in Karawang New Industry City (KNIC) area. For some reason, KNIC is located in a strategic location near to 2 airports and close to the capital city so that this area is also suitable for building business manufacturing and warehouse companies.

Moreover, every company needs a warehouse that can efficiently save products and also close to the supporting infrastructure, these things are provided only in KNIC. The concept offered by KNIC is basically a world-class integrated industrial city consequently the presence of world-class infrastructure, which the needs of most company clearly can be found in this place. Therefore, the company does not need to hesitate anymore.

Tags: Supply Chain

Related Post

Formulation for Calculating TKDN

Formulation for Calculating TKDN

Understanding Domestic Component Level (TKDN)

Understanding Domestic Component Level (TKDN)

AI Drives Growth in Indonesia's Data Center Industry

AI Drives Growth in Indonesia's Data Center Industry