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It doesn’t matter if your business merely sells tube socks or plasma big screen televisions; you are going to have to contend with a whole series of supply chain logistics. How you approach your supply chain logistics and implement them will determine if your business is going to be successful.
One of the first considerations with regard to supply chain logistics is who is going to be making your product and where is that going to occur. There are manufacturing centers all around the globe that handle every type of design and manufacturing.
Only you can determine which is the best fit for your specific product line. Although you may pick one particular facility to handle all your manufacturing concerns, you might also want to consider that company’s individual supply chain logistics. They need to bring in the raw materials which impact on the costs passed onto you. That’s why you should investigate the supply line all the way back to the original source.
Once your product has been made, the second important component of supply chain logistics is delivering that product to your fulfillment center. If the product is strictly domestic manufacturing then you’ll primarily be dealing with rail and trucking logistics. Which freight company is going to be the most affordable and dependable? If your product is coming from overseas, then you’ll be dealing with a whole new level of supply chain logistics as it pertains to the cost of container shipment.
You might be budgeting for transportation costs today but six months from now the price of oil could cause those prices to sky rocket. Factoring in contingency overrun costs is key to developing the budget of your supply line logistics. Once your product has arrived at the fulfillment center, the supply line continues through the order, stocking, shipping and delivery of that product to your customer. All of this means that part of your supply chain logistics needs to incorporate the many components of that fulfillment.
Once you’ve set up your operation it should run smoothly but it could mean periodic on site visits not only to the fulfillment center but to the original point of manufacturing. The bottom line is that any set of supply chain logistics is going to be far reaching and inclusive. Fortunately, there are many experienced professionals who have already created efficient supply chain logistics models for you to incorporate into your own business plan.
