In manufacturing the supply chain is the vehicle for the movement of raw materials and bought out goods from suppliers, through conversion and assembly into product and finished goods that are distributed to the customer.
The concept of an integrated supply chain containing upstream and downstream activities is illustrated. For the upstream activities, raw materials and packaging from suppliers are sourced and delivered. Frequently for Caribbean manufacturers, suppliers are from outside of the region and may be delivering over great distances with lengthy and variable lead times causing considerable vagaries in the supply chain. Materials are withdrawn from storage and progressed through in house processing, during which a high level of control of work scheduling and inventory management is vital.
Downstream activities start with finished product storage. The inventory status of finished product is accurately noted, product is released for order, taken out of its stock location, loaded onto transportation and distributed to the customer.
Effective management and control of the supply chain can realize significant cost savings for manufacturers. This can be accomplished in a number of ways, depending on the industry type, examples include the use of:
C&G International Inc. can help you audit your supply chain and put the necessary components in place to ensure that you reduce costs and improve the effectiveness of your supply chain.
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