Logistics is an essential part of the development of any economy. Would you be interested in joining this sector but you are not clear about the concept of supply chain? You are in the right place. Read on and start immersing yourself in an expanding world with multiple job opportunities!
In 2021, Spain created more than 1 million jobs in the field of logistics, according to data from Randstad Research. We are talking about the highest figure in the last 10 years. get ready with him Logistics, Distribution and Operations Course and specialize in a growing field. Make your resume stand out!
What are supply chains?
To start working in the logistics sector you have to be clear about what the supply chain consists of or also known as supply chain. It is a process that includes the following stages:
- Search for materials that will be used to create the final product. This stage includes the relationship with the companies that supply these elements.
- Construction of the product. Actions such as packaging and storage for shipment in the next phase are framed in this phase.
- Transport of the merchandise so that it reaches the destination where it was demanded.
- distribution and delivery to the client.
- As the last phase, the returns that the customer can do if he receives the product in poor condition or if it is not what he expected.
As you can see, the supply chain is a kind of production chain in which different professionals are involved with the same goal: that the item reaches the hands of the person who ordered it. Let’s go into detail, let’s see below what types there are. Aim!
Types of supply chains
In this section we define the types of supply chain and, in addition, in the next one, we will give examples of success stories so that you can better understand what their functions consist of. In this way, you will also discover real performances carried out by big enterprises and that have allowed innovation in the management of its supply chain. Let’s go there!
Traditional supply chain
This type of supply chain can be used for small companies that do not need a large control of its production, since each person involved in the manufacturing process makes their decisions independently. This lack of communication can cause a lack of control in the system, which if it is not resolved quickly, can lead to the delivery deadlines of pending orders not being met. As we have mentioned, in general, this type of supply chain only works for companies that do not have to deal with large quantities of raw materials or finished products, and that have a traditional manufacturing process in which a flow is not needed. continuous information for the proper functioning of the process.
Shared supply chain
In it the people involved in the manufacturing process also make decisions individuallybut they have a well-defined database where you can have access to all the information and to the different decisions that have been taken during construction.
Management supply chain
In her it is the provider who will decide how many products to send to each of their customers. To find out exactly the figure, he uses an inventory that must be drawn up by both parties, which includes the different average orders that have been placed during a year.
Synchronized supply chain
In her the entire phase of the production process is perfectly synchronized, so that the manufacture of the product is followed from the entry of raw materials until its arrival at the warehouse as a finished product and its shipment. In this last type of supply chain, the development of new technologies is very important, since each point of the process must be perfectly detailed and a logistics network must be created where Anyone can access the information that has been added for each party responsible for the manufacture of a product.
As you can see there are different types of supply chains, but all companies try to Optimize your efficiency, speed and coordination in the supply chain in order to save costs and be as competitive as possible.
Success stories in supply chains
supply chains or supply chain have evolved from the most traditional to work at incorporation of new technologies. Once we have made reference to the main characteristics of the most important types of supply chain, we are going to give examples of known companies with real cases so that you can better understand how it works in the day-to-day of companies and how fundamental it is for their progress.
Walmart supermarket logistics
As an example of an efficient supply chain, we will talk about Walmart supermarkets, famous in the United States. This company was one of the first to optimize its supply chain. Walmart uses an innovative system called cross docking by means of which the products are transferred directly to the truck that has to distribute them without having to go through the warehouse, and, therefore, saving all the costs of this process. As a result, Walmart can offer products at a much lower price than its competitors.
Cross docking and radio frequency identification tags are some of the innovative systems used by Walmart
Another of the innovative technologies that Walmart uses is the use of radio frequency identification tags, through which, and thanks to a numerical code, any merchandise is tracked wherever it is, whether it is on the way to a delivery, or in a supplier truck. This allows you to control all the stock and merchandise, solving any problem that may arise and avoiding costs due to delays or losses.
Zara’s logistics
To give a closer example, we are going to talk about the efficient logistics of Zara. This is a very interesting case because what fundamentally characterizes this company is the great coordination between the different parts of the supply chain. The main feature is that it replenishes its products twice a week, so you must have a very well structured and defined supply chain. To do this, at the end of each day, the manager or person in charge of each store must send electronically the volume of sales that has occurred on that day for each product.
In addition to that, Zara has a three million square meter warehouse in La Coruña, where all the products are perfectly classified according to their type with coordinated technology. In this way, the team of professionals of this brand compares the sales results of each store and the stocks they have in the warehouse, being able to pack and have all the orders ready in the trucks quickly and efficiently. Each of the products remains in the warehouse for only a few hours, with the arrival and delivery process being almost automatic.
Do you know of any other cases of innovation in the supply chain? What do you think are the factors that determine the success of a supply chain?
Become an expert in Logistics and Distribution!
You already know what types of supply chains there are. Now is the time for you to become a market expert with our Logistics, Distribution and Operations Course. At Formación we prepare you so that you can enter the job market ready to start performing the duties of your position. We have an internship service with which you can take your first steps in an expanding environment.
Once you pass the course you will receive two titles: a Training diploma and a title of International University of Valencia. Get the skills to work in the logistics department of any company in 200 teaching hours. Get ready!