Global Supply Chain Optimization

Global Supply Chain Optimization

Optimization of supply chain resources can be carried out at different levels of the hierarchy, for example, within a functional area, a subsystem, a separate logistics function, etc. In this case, the “principle of global optimization must be fulfilled, i.e. local optimization criteria and decisions made on their basis should not contradict the global optimum of the logistics system as a whole ”.

Each of the elements considered in the previous paragraph is one of the factors of the complex problem of optimizing the functioning of the supply chain. At the same time, as it is stated by the specialists of SourceMe a marketplace for industrial components, including rotary encoders, position sensors, cameras, etc. which helps the manufacturers to distribute their products and building companies to find and evaluate a huge number of necessary components quickly – the attention should be focused on the global optimization of the supply chain, on the management of uncertainty, or on both aspects together.

Global supply chain optimization can be defined as the integration of key business processes and the coordination of counterparties in the chain to synchronize all activities performed during production and distribution that add value to the end customer, and eliminate those activities that do not add value. Supply chain management seeks to optimize the entire system in order to achieve a higher quality of service at a lower overall cost.

Key elements in supply chain management

  • Logistics network configuration, supply chain planning and design
  • Supply chain integration and strategic partnerships
  • Inventory Management
  • Contracts and delivery bases
  • Outsourcing and procurement and distribution strategies
  • Decision support systems

Consumer value

There are five main ways in which this can be done:

  • reduction of all types of losses and activities that do not add value, such as handling, storage, or surplus stocks;
  • improving customer service, for example, reducing the lead time;
  • improving communications in the supply chain, especially related to forecasting the activities of its counterparties and integrated planning;
  • reduction of time for the development of new products; – more complete coordination of efforts to connect all links in the supply chain with each other.

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