Supply Chain And Its Optimization

Supply chain and its optimization

Introduction.

This document performs a bibliographic tracking on the optimization of the supply chain links in studies carried out in Ecuador during the last decade. It exposes the main concepts, parties, evidence and possible strategies for improvements based on a correct administration and integration of links, as well as the implementation of technological processes for departmental communication. We live in an era in full technological development, today more than ever the world has been imposed on technological updates and make use of them in the supply chain.

The supply chain is one that covers the processes of obtaining until the delivery and satisfaction of the final consumer, presents problems when their links are treated in isolation and there is no correct communication between them, for which there are strategies capable of optimizing resources andTo raise the sale value, without sacrificing the quality of the product, or the positioning of the company, for its correct management a collaborative business plan designed and evaluated from all departments, as well as the technological implementation in pursuit of the integration will be necessary. 

This article tells us about supply chain notions, evidence some of the main problems in their links and collects some solutions, likewise, it talks about the supply chain and in the correct management of the same.

Developing.

The concept of the supply chain is also called supply, it is a set of direct and indirect activities for customer satisfaction.

It has to do with production, distribution and delivery;However, when one of its links fails, management must develop strategies that help optimize resources and increase profits, it presents the following links: suppliers, production, sale and final customer. Escobar Guerrero defines her as:

It is the set of functions, processes and activities that allow the raw material, products or services to be transformed, delivered and consumed by the final customer. The design decisions of the supply chain are concentrated in selecting the number and location of the facilities, the stores and other nodes of the supply chain. 

It could be said that it is a horizontal line that includes obtaining raw material, through its transformation, until reaching the latest stages of production, distribution and disbursement. In turn, it is essential to talk about the value chain, which concerns the first, has to do with the diagramming of all actions capable or not to provide value.

This can be achieved through providing the supply chain with other critical capabilities already mentioned such as focusing the organization only in its essential competences, having flexibility in its structure to respond to unforeseen events, having the support of senior management,Promote organizational culture focused on change, etc. 

At the time of establishing improvement strategies, promotions and rappels could go. Thus, it should also be studied in its slightest details, trifles such as the forms of transport that facilitate the fulfillment of the delivery deadlines and the delivery of insurance that protect the production, without this affecting the capital of the company, all this occursThanks to adequate administration of all links that must converge towards a common purpose, in addition, they must be correctly supervised and must undergo continuous evaluations.

The administration of the supply chain and distribution often needs modifications and redesign to adapt to the changes and demands that the market requires, this benefits the company, giving value and generating a better service to our customers.  There must be an interdepartmental communication to achieve the goals. All activities that make up the supply chain are important, the inventory stage is vital, since they serve to avoid economic fluctuations and apply to volume cost reductions, at the time of making an important purchase of raw material, the company benefitsof discounts offered by suppliers.

For effective management, customer satisfaction must also be available, this gives added value to the brand and its products so it directly affects its competitiveness. Add value to the organization and also to the company, in this way it becomes more competitive. To achieve these objectives, there is talk of collaborative planning, this will serve as manual and motivation of joint work, define roles and in turn a joint business plan is prepared.

The Joint Business Plan is an element that provides the coordination of collaborative planning in the supply chain;which could be rigged to a virtual company, in which the actors would be the partners that make up the supply chain.  The companies that show more positive results are those that study and treat in detail each of the links of the chain, thus “the direction, organization and global control of the chain;and the information system;without hindering independence in making decisions of each link. Strategies should also emphasize customer service, financial evaluation, as well as resources optimization.

Its management must contemplate different approaches that in the first instance analyze the links independently, from obtaining raw material to the final customer satisfaction, and then connect to them as a parts of a whole, then the production and distribution actions will be integrated, based on services and as an integrative part of the chain, also, internal processes will be taken into account through continuous analysis and evaluations to maintain the changes assigned at a given time.

Supply chain management is a fundamental weapon for the improvement of competitiveness in which the majority of companies are immersed in this sector plans production from a qualitative approach but ordered with a series of alternatives that seek to satisfy the orders ofAn optimal form in the shortest possible time. 

When creating a strategic vision, it is necessary to observe competitiveness, as well as inherent advantages and disadvantages, which highlight a timely linkage. Its function is to make the most of the total value generated. The objective of supply chain management is none other than to improve the competitive performance of the companies that make it up. It must be clear how much it costs to produce the good to be marketed and what is the price at which the customer is obtaining it, hence the profit.

 For the success of the supply chain, the sensitivity to the fluctuation of the market must be pursued, as well as the correct integration of the links and the specialization, punctuality (key in competitiveness) and the creative advantage over competition, as well as optimizationof resource to avoid losses or deterioration of raw material and the search for adequate technology that intercommunicates the different departments. The proper supply allows the company to be provided at the right time of materials, avoiding delays in production;In addition to the correct storage of both raw material and products. 

Regarding storage, it must be connected with production, distribution, purchases and sales, since communication and transfer problems will be detected in the supply chain. The supply chain must pursue a logic in all processes to increase company profits, reducing resources and time, without sacrificing quality and maintaining positioning. Its scope is given by the limits of the rationality of the processes, there is a great gap between clients and suppliers, for this level a strategic and demand planning is necessary . 

The fact of having several processes allows the company to generate better income, because each link generates income for the company, which is evidenced in the comparative analysis of income.  Demand planning corresponds to the production, storage, distribution and collaboration with external members. One of these strategies is outsourcing, described by Ochoa Delgado, & Salcedo Carrillo as follows: currently one of the supply chain strategies that is handled worldwide is that each link specializes in its main activities, while inactivities that are not within the turn of your business delegates to third parties.

All the participants of the production process must aspire to an analysis and strategic planning. The information lifting is carried out and the processes of the supply chain are identified, such as local acquisitions, import management, storage, distribution and delivery of products, cellar management, inventories, sales, among others, with the endTo identify and analyze opportunities for improvement in each of the processes, generating a savings not only monetary to the company by reducing costs but will also reduce workloads in the staff, avoiding delays in the processes, duplicity of functions and pursuing the pursueContinuous improvement and thus seeking to obtain optimal management.

The use of human talent also leads to high levels of satisfaction with respect to the client, to achieve an improvement in competitiveness, its integration must be emphasized, as well as promoting strategic collaborative plans among its actors. The indicator management model offers a market guarantee contributing with a finished product of good quality and competitive in the local and international merchandise. 

They must be integrated from the lowest levels to the highest in the chain, the availability of the product should also be improved, as well as orders and orders. The problems existing in the supply chain are due to lack of studies in depth, not only internal measurements should be handled, but also must be interrelated to measure their performance together and establish communication channels to improve performance, thusCreate competitiveness, assigning roles and responsibilities. For this there are tools like Kanban that provide support in the reorganization of the chain.

It facilitates the improvement in the different activities of the company through the use of Kanban, this is done through the elimination of waste, organization of the work area, reduction of model changes, use of machinery vs. Use based on demand and multiprocess management.  Likewise, the scope is evidenced in individual or joint decision -making and behind them the impact generated in the other parts of the chain, it is evident in the improvisation capacity and response to immediate problems. When there is an effective administration, information circulates quickly and timely.

At present, we face a digital age that advances by leaps and bounds, we hold virtual meetings and pay our services with digital money, even more reason the business area must be up to date with these changes, since we are part of a hyperconnection andMore and more is bought and sells by the network. The digitalization of transactions and companies must occur urgently, since each company must improve its processes using new technologies, the supply chain administration is emerging as a combination of world -class commercial technology and practices. The advantages that technology offers for the supply chain are: automatic storage and artificial intelligence for the production of business plans.

conclusion.

The entire supply chain is important, from the suppliers to the satisfaction of the final consumer, so you have to place yourself in the first link in the chain, choosing suppliers capable of fulfilling deadlines and orders rigorously, thus avoiding failures in production and production andsubsequent marketing. One of the main problems in collaborative planning. 

There are organizational deficiencies in Ecuadorian companies, to improve their production, it is necessary. To improve these aspects of the supply chain, a joint business plan must be developed.

The most important strategy focuses on product positioning to reach the final customer satisfaction, for which the chain must be rigorous with quality, delivery deadlines, in the same way it must offer the client the ease of discounts, promotesand a novel product. Also, compliance with goals and standards to improve work in all collaborators should be contemplated.

To improve efficiency it is necessary to evaluate communication between departments through technology and customize customer service, through highly trained personnel. Making integration, the company can be competitive worldwide. The absence of a functions manual is evidenced. From the business vision since if the human capital is not addressed to the same vision, it will generate a significant problem to the organization, however, the error of any element included in the value chain will lead to the failure of the organization.