The potential level for Improving service, saving costs and enhancing resources utilization has a limit that can only be removed via collaboration. Collaborating information, transportation, warehouses and infrastructure is a key for continuous improvement in flow of goods enabling cost effective reduction in inventories while substantially improving availability.
The key for streamlining flow of goods is reducing the lead time it takes to convert demand signals to supplies. It encompases New Product Development, Purchasing, Produciton and Distribution. Streamlining the flow requires transforming it, os it is Demand Driven where demand signals are the trigger for the full cycle of operaitons.
There is a growing consumers concern as well as growing intervention of the regulators in the business world demanding more and more that the system operates in a ecologically and socially responsible manner. This has not skipped the Supply Chain and GREEN SUPPLY CHAIN has turned into a standard component of supply chain management.
Supply chain operations is subject to effective synchronization amongst multiple organizations and is crucially dependant on the availability of the correct data at the right time. Appropriate IT solutions enable the capturing of consumption data, at the moment of consumption and the effective flow of this information throughout the many entities that participate in operating the supply chain.