Carlo D'Amico - Supply Chain Manager EMEA

«Fueling your logistics chain»
«Go beyond logistics, make the world go round and revolution business»
«Taking action, getting results»
«Logistics through innovation, dedication, and technology»
«Possibility in every direction»
«Ready, set, done»
«Special handling. Extra service»
«Thinking the way forward»
«Your navigator in the world of trade»
«Leadership and learning are indispensable to each other»
«Leadership is the capacity to translate vision into reality»
«Power beyond cargo»
«All time management begins with planning»
«Management is doing things right; leadership is doing the right things»
«Leading and inspiring people»
«Leadership is thinking and talking about the solutions»
«Streamlining your supply chain»
«Business acceleration through digital communication»

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Supply Chain Management - Introduction

Introduction

Supply chains have existed since trading routes were developed to allow the different people of the world to exchange goods.

The driving forces behind the great emphasis on supply chain management recently are:

the development of information technologies that allow quick and inexpensive communication between multiple parties
the globalization of world trade, which has accelerated the exchange of goods across borders.

THE GLOBAL NATURE OF SUPPLY CHAINS

Supply chain management plays a critical role in managing the manufacture and flow of goods around the world. The numerous challenges in managing that global supply chain include differing laws and regulations, different languages, cultural barriers, and political strife.

If your company makes a product from parts purchased from suppliers, and those products are sold to customers, then you have a supply chain. Some supply chains are simple, while others are rather complicated. The complexity of the supply chain will vary with the size of the business and the intricacy and numbers of items that are manufactured.

Elements of the Supply Chain

A simple supply chain is made up of several elements that are linked by the movement of products along it. The supply chain starts and ends with the customer.

Customer	The customer starts the chain of events when they decide to purchase a product that has been offered for sale by a company. The customer contacts the sales department of the company, which enters the sales order for a specific quantity to be delivered on a specific date. If the product has to be manufactured, the sales order will include a requirement that needs to be fulfilled by the production facility.
Planning	The requirement triggered by the customer's sales order will be combined with other orders. The planning department will create a production plan to produce the products to fulfill the customer's orders. To manufacture the products the company will then have to purchase the raw materials needed.
Purchasing	The purchasing department receives a list of raw materials and services required by the production department to complete the customer's orders. The purchasing department sends purchase orders to selected suppliers to deliver the necessary raw materials to the manufacturing site on the required date.
Inventory	The raw materials are received from the suppliers, checked for quality and accuracy and moved into the warehouse. The supplier will then send an invoice to the company for the items they delivered. The raw materials are stored until they are required by the production department.
Production	Based on a production plan, the raw materials are moved inventory to the production area. The finished products ordered by the customer are manufactured using the raw materials purchased from suppliers. After the items have been completed and tested, they are stored back in the warehouse prior to delivery to the customer.
Transportation	When the finished product arrives in the warehouse, the shipping department determines the most efficient method to ship the products so that they are delivered on or before the date specified by the customer. When the goods are received by the customer, the company will send an invoice for the delivered products.

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