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logistics & entrepreneurship

 

How important is the Supply Chain Management for a business?

 


 

The world of businesses and organizations may be going through a time when the changes are rapid and continuous, but some of its functions, which existed and will continue to exist, should not be stagnant as they also need more effective management. Logistics is also responsible for such a function.

 

What do we mean by the term Supply Chain Management?

 

As Supply Chain Management or Logistics is defined the operation of the enterprise, engaged in all activities relating to the design, implementation and control of the efficient financial flow and storage of raw materials, inventory of processes, final products and all the related information.

 

Logistics may not be such a popular sector as others, but has recently come dynamically at the forefront of greek entrepreneurship, and according to the speakers at the last Hellenic-German Chamber of Commerce’s event, Logistics is just as profitable as the tourism industry!

 

In Greece, the Logistics  sector has large profit margins due to the development of new infrastructures in ports and airports as well as the gradual integration of large road axes.

 

Why is supply chain management in an enterprise so important?

 

In order a business to function properly must have a smooth flow in all its functions as well as in its production process. Proper and sophisticated use of management systems in the internal organization of sales and ordering, transport, storage and stock management of a business or organization is considered to be extremely necessary.

 

So, it is no coincidence, that almost every day we talk about a better and more efficient operation of the supply chain at both national and incorporate level. Supply chain management can greatly reduce the costs of a business and thus bring more profits to it, in an environment that due to financial instability even a small mistake, acts catastrophically.

 

Because of the great importance of Logistics for a business or organization, there are other companies (third parties) that provide services such as storage of raw materials, transportation, distribution, etc. In this way, are achieved reliable results and costs are further reduced.

 

An important point at these services is the telecommunication and data management service that has been added to the other traditional services. Some of these modern services are the monitoring of online orders, electronic receipt of or non-receipt of products, customer service centers by telephone or via internet and personalized services designed to meet the particular needs of each business / organization.

 

Supply chain is a very important aid for any small or large business as it can increase profitability and productivity, and also minimize the margin of error while giving a competitive advantage.

 

P.G.A. & E.L.

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