In brief: What is Supply Chain Management, inbound logistics and reverse logistics
Exporting and Importing can often be an extremely complicated and mundane process as there are so many rules, regulations as well as countless number of procedures to adhere to. This, many a times, may require to prepare and submit documents for import and export. Usually, freight forwarders would prepare it for us, but it is also good to know for ourselves as to how to complete the relevant documents by understanding what the terms mean. As such, in our new article series titled “Export Terms”, we would introduce you to all the various terms used in the international trade, be it through air, land or sea freight. We would roll out one related article on a regular basis, which would help you to get a comprehensive understanding as to the document preparation for the purpose of doing trade internationally. In this article, we would be exploring what is the meaning behind supply chain management (SCM).
What is Supply Chain Management (SCM)
SCM refers to a supply chain being managed. A supply chain refers to an interlinked network that essentially consists of the material supplier, manufacturer, distributor and retailer before the finished goods finally reaches the hands of the consumer. A supply chain management seeks to minimise the costs of the goods going through the supply chain while increasing the satisfaction of consumers.
Many organisations and well established business depend on their network of supply chain so as to get high quality materials that could be converted into finished goods. Furthermore, businesses also seek for ways to minimise costs as well as the lead time. For example, buy shortening the time the goods are kept in warehouses. Companies such as Apple, Amazon as well as Procter and Gamble are labelled as companies who are leaders in their supply chain management. This is because they are able to meet the demand of customers easily through their management of their companies’ supply chain.
What is Inbound Logistics
Inbound logistics are referred to goods that are incoming to be received, stored as well as sending the received goods to another place or for use. When a good is waiting to be received by a particular, the goods are therefore referred to as ‘Inbound logistics’.
What About Reverse Logistics
Reverse logistics are referred to as items that are sent back through the logistics chain by the firm that has initially received it. These are usually extra or unwanted parts and material that are sent back either to be reused in other project parts, recycled or are completely disposed. In other words, these are ‘waste’ generated by a businesses which are sent away to to other interested parties, where they make money out of them.
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