Supply Chain Mangement

Logistics in Supply Chain Management



	Christian Decker Managing Partner

The shortening of the value added production chains in industrial countries, together with current trends towards globalization and specialization, as well as shorter product life cycles, have a major impact on customer behaviour, market dynamics and the logistics network:

Companies need to be able to view and control every step of the supply chain from start to end.
Service providers on the logistics side must accept the challenge of adapting to changes in the supply chain, so they can easily and flexibly react to customers’ requirements, create added value and ensure as well as develop their own position on the market.

By using Supply Chain Management (SCM), companies can optimize the value chain from a strategic, tactical and operational standpoint. Business processes are made more efficient and effective at every stage of the supply chain, from the procurement of the raw materials to the sale of the finished product to the end customer. The same processes can then be integrated and mapped in a seamless sequence, supported by the appropriate information and communication systems. Furthermore, companies are forced to keep up to date with new products and innovative solutions, react quickly and flexibly to market changes and meet customers’ requests for a better service. Companies cannot achieve the above without working closely with the best available business partners. In doing so, they need to keep costs to a minimum or even reduce costs to maintain their position in a highly competitive market by improving the supply chain across the group.

Information for SCM comes mainly from the areas of logistics, marketing, production, group management, group costing and controlling. It can be divided into four areas: