GROUP 1

Almeida, Russein
Antonio, Aron
Asiong, Crisanta
Bombase, Trixia

How could your supply chain create a value?

In commerce, supply chain management, the management of the flow of goods and services, money
and information, involves the movement and storage of raw materials, of work-in-process inventory,
and of finished goods as well as end to end order fulfilment from point of origin to point of
consumption.
A supply chain is the network of all the individuals, organizations, resources, activities and technology
involved in the creation and sale of a product. A supply chain encompasses everything from the delivery
of source materials from the supplier to the manufacturer through to its eventual delivery to the end
user.

A supply chain involves a series of steps involved to get a product or service to the customer. The steps
include moving and transforming raw materials into finished products, transporting those products, and
distributing them to the end-user. Depending on the functions the supply chain management systems
perform, they are classified into two categories, namely, supply chain planning systems, and supply
chain execution systems. The purpose of Supply Chain Management (SCM) is to keep chaos at bay –
synchronizing the activities of the network. All SCM or central planning processes created to manage an
organization's demand/supply network consists of three primary activities, as well as two secondary
activities.

1. Expand product offerings. From building gift baskets to creating twin-packs, value-added services
help give your customers more buying choices.

2. Get products shelf ready. Value-added services such as price marking, tagging, and display building
help to streamline the process of getting products on store shelves.

3. Enhance customization capabilities. Personalization is one of today's hottest trends. Want to offer a
choice of embroidered logos on apparel? Allow customers to choose the face plate for their cellphone?
Value-added services can help you deliver.

4. Manage inventory more efficiently. With the ability to customize products, you're able to stock fewer
SKUs, thereby reducing the cost of carrying and managing inventory.

5. Reduce the number of suppliers. By asking your existing partners to perform more value-added
functions, you can reduce the number of suppliers and streamline your supply chain. Even materials
such as cardboard for displays can be shipped to a third-party logistics (3PL) provider to be built and sent
out with customer orders to eliminate one step in the process.

6. React faster to changing business needs. With value-added operations close to the end customer,
you can delay product configuration until the last possible minute to respond more accurately to
customer demand.
7. Manage transportation costs. The closer packaging facilities are to manufacturing operations,
distribution centers, or end destinations, the more cost effectively you can transport products.

8. Control labor costs. With automated solutions and careful review of supply chain processes, value-
added services can help eliminate downtime and reduce the number of touches required in the
packaging process—ultimately saving money on labor.

9. Ensure continuous improvement. If you team up with a 3PL, they can assist with process
reengineering, packaging needs assessment, component purchasing, and supplier evaluation to ensure
value-added services are delivering what customers demand.

10. Find a partner. Incorporating value-added services can be challenging. Experienced 3PLs can be
valuable allies. They offer the flexibility and resources to accommodate unique requirements, seasonal
fluctuations, and business growth. Many of today's 3PLs approach value-added services with a spirit of
collaboration.