When it comes to the modern marketplace, transportation, and general logistics – the supply chain is where everything links together to either form a cohesive business plan or fall apart at the seams due to misconduct or inexperience.
While people hear the term bandied about on occasion, there are very few people who understand the inherent importance of a decent supply chain, and there’s no greater example that we can go towards to solidify and exemplify this concept than with the recent halting of international shipping routes due to the pandemic. This is a prime example of what can happen to even the most solid foundations, and why the best way to target and deal with these issues is to understand the principles and concepts that allow these institutions to keep the machinations going.
This article will go over the foundational principles of supply chain theory including its inherent role across the industries, and why there needs to be a systemic update in order for these companies offering the service to succeed.
The Role Of A Supply Chain
Let’s break it down a little shall we. The role of a supply chain in any business is essential, whether it involves garnering the right equipment or stock for a construction site/company, an e-commerce business needing a solid means of transporting their wares to clients around the world, even food logistics require a robust and tailored supply chain model in order to find some degree of success.
The way in which this is achieved is where the magic resides, and where so many companies tend to fall off the wagon with overlooking important details and focusing on the wrong rhetoric. A decent supply chain involves hiring the most opportune and viable contractors to carry out aspects of the supply chain. This can involve the coastal freighting portions of the logistics journey, the warehousing and delivery which is typically covered by 3PL companies.
Some of the finest logistics companies encapsulate all aspects of the supply chain into an easily digestible model and work accordingly.
The Fragility Of One Bad Cog
With this in mind, let’s go over why so many shipping routes have stopped in recent months. The pandemic was of course the major blame; however, it turns out that many of these routes were interrupted by a lack of labor in one particular aspect of the supply chain journey.
The lack of labor in one section halted the entire process and in turn cost company’s countless dollars in revenue and customer satisfaction. It may be a robust and strong industry with a long-winded history of delivering and logistical thinking, but even these days in the international market, it seems that one bad cog can indeed stop the clock.
So, what is there to do about it? Technology. This simple idealistic crusade into the wild digital yonder has seen some logistics firms flourish and dominate the once competitive market thanks in no small part to adopting the right technologies at the right time.
The revolution of blockchain is one major notable example, with the use of AI and IoT to allow for a greater understanding and tracking efficiency to be passed on to customers and executives alike. Allowing the companies that offer logistical services to give unparalleled levels of data for analysis for areas of improvement and areas of success.
The notion of logistical competency is not as lost as one may think, with the right adoption of the right technologies, there is no end in sight for the potential growth and continued convenience of an effective supply chain.