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Analysis of the supply chain and the study of the concept of Supply Chain Management

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Innovation in logistics will only continue to adapt to the changing environment to meet market requirements on traceability issues which are a major issue of our time. The questions that arise are: How has logistics adapted to the changing environment? How does better traceability contribute to the efficiency of logistics? After analyzing the technical nature of logistics, we will strive to demonstrate its inclusiveness with the study of the concept of Supply Chain Management. Finally, it should present the new challenge posed by traceability.

The term "logistics" has been taken out straight out of the military vocabulary. It defines the arsenal of measures implemented by the company to allow its development and survival. Logistics encompasses all management techniques and optimizing the management of raw materials and finished products. It is the art of bringing the means and resources where and when it is needed.

Logistics has traditionally represented the activity from the availability of finished goods from the factory or dealer until delivery to the customer. It has now melted into the concept of Supply Chain Management, whose objective is to optimize the management of physical and information flows along the supply chain from the supplier's supplier to the customer's customer.

Fayol's definition of logistics is as follows: Logistics is the strategic process by which the company organizes and supports its activities. As such, these are identified and managed through flows and informational materials that are related, both internally and externally and downstream.

Within the general objectives in which it competes, its mission is to enable the development of the company's offer and make the encounter with the market demand, while systematically searching the optimal conditions in execution.

In a dichotomous approach of competitive advantage, the domination price (i.e. by costs or differentiation is entered into the era of price and differentiation. Now it should lead in all areas, such as price, quality, timing, flexibility and service levels. Different issues have been discerned such as the price or cost, product quality, deadlines, flexibility and the level of service.

The primary measure of performance is the level of service. The formula to measure performance is Level of Service = Total amount of products delivered on time /quantity ordered.

This indicator can be broken throughout the chain and it serves primarily to position itself relative to competition (for example it is widely used in large food processing companies).

Tags: supply chain management, analysis of the supply chain, study of supply chain management concept

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