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Transport, distribution and logistics
The logistics that makes possible the distribution of its products and provide its services can strongly influence the results. Check to ensure that their methods of distribution are optimized:

• Means of transport and distribution routes

The way you distribute your products can have an impact on the cost of your business and customer satisfaction. The sale may occur directly with the customer through a marketing team of a manufacturer or even the Internet. When the product is delivered (or when you get your raw materials), must seek the best means of transport (x-term cost- quality ), especially when dealing with large quantities.

Some advice for the distribution process:

• Use the most appropriate means of transport and distance to the product, whenever possible (remember that you can find low prices for shipping outside the road, but the time will be longer);
• Negotiate freight costs in advance;
• Adjust with the customer (or supplier) adequate amounts, so that no party has very high inventories, to ensure greater flexibility in manufacturing and production flow lines.
• In the position of manager, you should get better performance in the distribution of products, always alert to inventory levels. The proper storage and travel time of delivery can greatly enhance the productivity, use logistical tools (calculations and spreadsheets) to choose the best storage sites and determination of the best delivery routes. Both reception and dispatch must be effective, reducing processing times and at all bureaucracies that add value to the product. Finally, the chosen mode of transport should take into consideration:

Type of product (perishable or not);

• Time needed to acquire the raw materials;
• Availability of them and their products;
• Easy access and negotiation with suppliers (local or overseas);
• Customs procedures (for imports / exports);
• Volume and weight of the product.
• The transport of goods to your company (or even customers) can be done by modal air, rail, water or road, or a combination thereof for multimodal transport. Each has its advantages and disadvantages, and it all depends on time, volume, location and cost. More information on multimodal transport in the field of multimodal transport challenge .

Supply chain management in a nutshell
Many parameters are taken into account to improve the supply chain and reduce costs:
- Reduce the number of suppliers, so if you can a close relationship, a partnership;

- Reduce the number of contractors to achieve the same goal;

- For finished products, establish distribution channels and shared management of inventory, so customers and suppliers share costs, profits and risks;

- Anticipating the shortage by good historical and forecast demand – and adjusting their stocks accordingly.

In the dynamic environment and with competitors offering similar products, agility and cost factors may be determinants of success or failure. Thus, the closer to a partnership are the relationships with suppliers and customers, the greater the chances of having everyone involved in the process and committed to providing the best product to market.

Proof of the importance of the area is to realize that the big companies already have department, board or management of logistics and / or supply chain, which is gaining increasing importance over the years.

Here are some ideas for improving the process of supply chain management in your company:

Improve collaboration and communication among buyers with suppliers, informing them of his intentions to modify or improve any process of manufacture;
Keep inventory levels as low as acceptable (if it is safe!), A process using just-in-time production by requests whenever possible (see Inventory Control: logistics and demand forecasting and reduce inventory to improve costs ). The inventory cost is one of the main indicators used to analyze the performance of a logistics organization;
If outsourcing is cheaper (consider everything: production, transportation and even loss of know-how), why continue making the high costs internally?
Invest in communication technologies, especially with suppliers to reduce the time of order / delivery and ensure that the raw material is always available. As the cost of inventory, time customer service is another key indicator because it encourages the company to have a closer relationship with its customers and thus ensure a faster service;
Use existing information technology (many low cost): start with sales forecast , go to inventory control, shopping, ordering, shipping, delivery and so on – there are tools to help computational and automatic in each step of the process ;
Make purchase decisions more (and higher inventories) and discount-based spreadsheets and calculations, not on pressure and intuition.
So, keep in mind that the process of supply chain management is not done in isolation: it is a relationship between his company and others with whom you relate. Every change you make to the process of managing their supply chain should be a shared and positive experience for all who compose it – a true win-win – for the long-term relationship is beneficial to you, your suppliers and your customers.

The manager must ensure an efficient distribution and inventory costs low, the balance between the two can boost productivity and efficiency

The implementation of the concept of SCM is very complex and time consuming, and would never be feasible without the support of IT. The SCM can be implemented using a generic ERP package, integrating the various processes and activities inside and outside the company, yet the supply chain planning and optimization, the ERP is far short of expectations. To mitigate this deficiency in the existing ERP systems, then the applications came APS ouAdvanced Schedulling & Planning System, the generic name for a generation of optimization software throughout the supply chain, from planning involving demand, production and distribution, enabling connect the logistics decisions and manage them in an integrated manner.

Growing companies in the realization that the future challenges of SCM will be related to increasing pressure to deliver better products at lower costs, faster and custom markets. The main features of the market that companies are facing in the new globalized environment are:

• Competition between supply chains;
• Increasing pressures for better products;
• Cost reduction;
• Greater speed;
• Production driven by demand ;
• Continuous and smooth flow of production;
• Global markets;
• Customized services;
• Commitment instant with different patterns;
• Profits more aggressive;

Supply Chain Model
Every model of supply chain management must include ways to improve efficiency – the gaining of income – of the following activities:

• forecasting and planning of the balance between supply and demand (see How to improve demand forecasting );
• Location of suppliers of raw materials;
• Product manufacturing;
• Product storage;
• Delivery of the product;
• Return the product by the customer, if necessary;
• Feedback through customer service and process improvement where necessary.

Remember that if you get information about the processes and numbers, it is easier to manage them. However, it is good to make sure that the numbers reflect reality, so that management decisions are taken in light of actual knowledge of the process. Moreover, with a background in hand, is less complex to identify weak points, such as dependence on a single supplier or a market.

The problem arises also in completely new products, innovative models where the ready can not be applied and thus requires new solutions. For example, designing a new factory in China, the products would be delivered to customers, after manufacturing in six weeks (for ships). The problem: not considered saline environments may rust products. Although in this case the question of changing the type of transport is not placed on the table (because the cost would multiply by 10), one must take into consideration the factors inherent in the type of transport and packaging. For more information on the status of the ports in Brazil and see the world ‘s busiest ports in Brazil and abroad and movement of Brazilian ports , for more details on cargo transport in Brazil, see Brazil cost – state of the cargo transportation , Infrastructure structure of highways in Brazil , and Brazilian Logistics: what our situation? .

Various levels of planning also can (and should) be considered: strategic, tactical and operational. It is knowing your own distribution network with the existing inventory controls being used and the first to start a coordination strategy of delivery, which began even before manufacturing them. In addition, one should use the decision-making models based on linear programming and transport models, which become more evident the costs and interdependencies between steps (see Series Operations Research – an overview ). We, finally, to the formulas and complicated calculations that a specialized software (ERP) will be responsible for managing the day-to-day.

In the example of our equipment sent by sea there is another problem: the overflow. These platforms are used only to receive products and redirect them. There are times when bottlenecks occur (and other times when there is lack of products) in these distribution centers. This is the problem of balancing flows. This balance ensures that all flow entering is equal to what comes out. These platforms do not produce and consume products, only forward. However, you can use this point of redistribution as a producer, for example, he packs the product, apply a label or an assembly step ends.

The management of the supply chain is a process of strategically manage different flows (goods, services, finance, information) as well as relationships between companies in order to achieve and / or supporting the organizational goals

The supply chain management is a set of methods that are used to provide better integration and better management of all network parameters: transportation, inventory, costs, etc.. These parameters are present in the suppliers in their own company and ultimately the clients. The proper management of the network allows an optimized production to offer the end customer the right product in right quantity. The goal is to obviously reduce costs along the chain, taking into account the requirements of the client – after all, this is quality: deliver what the customer wants, the price and conditions that they expect.

This management is sometimes difficult, especially for a system that has no control over the entire chain. For example, a company that outsources a portion of the production or logistics , no longer has control over an important part of the process. It is difficult also because the demand of the customer is mostly unknown and varies substantially from one month to another, which implies a more complex production planning. The products to be manufactured may also change (new season, fashion, models, improvements), which put in evidence the need for a pricing strategy and accounting of supplies and inventory.

The supply chain management