International supply chain and logistics processes could be really complex and complicated. In this article, we take a look into the various steps involved in the supply chain and logistics process, as a guide to manufacturers, suppliers and importers.
Steps In Supply Chain And Logistics Process
1. Plan
Planning is very important for determining the supplies required in your business, the volume and the supplier to choose for each of your stock items. Also important from the onset is the storage required for what you intend to purchase. Having a well planned end-to-end forecast of the process reduces the risk of shortages of overstocking.
2. Source
Sourcing involves the entire process of vendor selection – request for proposal, screening, evaluation and selection. The objectives for each type of vendor must be clearly stated and the criteria for selection must be clear and continually reviewed for continuous improvement. The ypes of vendors will include:
– Raw materials or trade items producers/suppliers.
– Freight forwarders
– Clearing agents
– Truckers
3. Buy
International procurement involves a lot of negotiations and more primarily understanding of international commercial terms and conditions including payment methods and freighting. Also, it is important to mitigate your risk exposure at every stage of the value chain. Negotiations will include purchase prices, discounts, payment terms and shipping conditions. It’s important for the buyer/importer to be away of the regulatory requirements of the country of origin albeit this is expected fo be well advised by his freight forwarder.
4. Freighting
Moving your materials from the point of supply or manufacture to your factory, store or home has many intricacies and peculiarities from one country to another. Our article, How To Efficiently Freight And Clear Your Cargo In Nigeria is instructive.
5. Delivery, Storage and Distribution
The final stages of the supply chain and logistics process are:
Delivery: In between the freighting of the items and delivery, the consignment needs to be cleared of the port of destination. Our article, How To Efficiently Freight And Clear Your Cargo In Nigeria is instructive for this.
Storage: Appropriate provisions are required for the storage of your supply. This must be planned long ahead the consummation of the buying or in the worst case during shipment.
6.Distribution: And of course, items received and stored need to be distributed to where they are required – either in the factory, the store or to the final consumers.
In all proper planning and committed execution of the plans – taking cognizance of variations that may be required in between – is the bedrock of a good and well-run supply chain management system
This article is written and published by Pseudonet Logistics.
Need freight forwarding or customs clearance services? Contact: 234-8137169437 or info@pseudonetlogistics.com
