Take control of the distribution chain
Supply chain management is all about the flow of products, information or money through a company – from manufacturer to customer.
With the right management of the distribution chain, your company can reduce costs and save time. It can also simplify and improve the flow of information in the supply chain.
What is supply chain management?
Supply chain management – sometimes abbreviated to SCM – is the management of how products, money and information flows through a business, from manufacturing to end consumer.
Typically, supply chain management is divided into three flows:
SCM is all about pretty much everything related to purchasing and incoming and outgoing shipments. Consequently, this value chain has a lot to do with logistics. It’s often the person responsible for purchasing who is also responsible for the company’s supply chain management.
Why is supply chain management used?
Supply chain management is first and foremost used to reduce costs associated with the distribution chain. By cutting down on routine costs you can save time and money in the supply chain.
It’s also about reducing the time it takes to complete business transactions. Using SCM you can also improve the quality of how information flows, and make it easier for information to move between different links in the value chain.
The distribution chain in practice
In practice, supply chain management can be about managing the following aspects of the distribution chain:
- Strategic purchasing – the selection and evaluation of suppliers, agreements, etc.
- Operative purchasing –order planning, delivery planning, shipment monitoring, etc.
- Logistics – the management of all shipping, invoices and trade documents.
- Warehouse management – the design of warehouses and capacity planning, processes and inventory.
For example, you might review suppliers and try to buy more products from each supplier, to negotiate better terms. Correctly executed supply chain management can contribute to reduced material costs, packaging costs, customs, shipping and warehouse costs.
Digitalisation improves your overview of the supply chain
Thanks to digitalisation, you can get a better overview and take control of your supply chain. The technology allows you to gather and structure data, and to use points of measure to get insights into your business critical flows.
This is how you create visibility throughout the entire supply chain – from raw material to consumption. If you work with supply chain management, digitalisation gives you a better overview and more control. You can follow a product through the entire cycle, from raw material to consumption on an activity level.
When deviations occur in the distribution chain, technology gives you great conditions to discover this in time. By taking proactive action you create a better experience for your customers.
Make logistics a core issue
As an e-trader, you face a rather complex network of producers, suppliers, partners and distributors. The challenge is to get all these points of contact to communicate with one another. Here, technology and digitalisation is of great use to you. Especially as your business grows, making logistics a core issue becomes essential.
More often than not, all the information you need is already available in one way or another. The challenge is to identify what information you need, to collect it, and to make sure that all parts of the distribution chain speak the same language.
Integrate your e-store with our transportation system
When it comes to shipping, technology can help you thanks to API’s, by linking various systems to each other. In PostNord Portal Business there are many ready-made tools to get a perfect overview of all your company’s logistics. Using various integration solutions you can connect your e-store directly to PostNord’s shipping system, to get a complete overview of your supply chain management. You can also integrate your business system for an optimal flow in the supply chain.