What Is The “IT” Factor Of Supply Chain Networks?

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Supply Chain Networks

Supply Chain Networks-You see it. You like it. You get it. Sounds simple, right?

From your perspective as the customer in a 24×7 connected world of online shopping, it certainly is simple. That’s the whole idea, after all.

And not only to do you get what you order – you get it quickly. Two days from now. Or the next day. Or the same day. Even within the hour.

But as with all things of value – including experiences – the complexity is often hidden. For you to get what you want when you want it, the activities of multiple supply chain networks need to be orchestrated behind the scenes.

Delivering it

To get a sense of how all of this comes together, let’s take a look at a recent party I threw. On the morning of the party, I decided I needed a new Bluetooth speaker to stream my music. For me to get the speaker on time, an efficient logistics network needed to kick into gear.

The speaker needed to be picked and packed from either a distribution center or a retail outlet nearby. Delivery trucks needed to be on hand and routed to my front door. Because time is of the essence, all required product and distribution data needed to be on hand as well. The result was that I got what I wanted when I wanted it. Music to my ears!

But for the speaker to be available for shipping in the first place, companies need to have the inventory on hand. This inventory needs to be balanced across globally dispersed distribution centers. Traditional challenges of buffering inventory to prevent stock-outs, while minimizing inventory levels to keep costs down, apply more than ever.

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Article Credit: Forbes