Understanding What Certified Supply Chain Service Is

Heard about supply chain service before? Do you know what it means, or what the service does? Well, fret not! We can find out what it means and what certified supply chain service in Malaysia does. 

I’ve always heard about it but I never really ponder to wonder what a supply chain actually is. 

Let me indulge you with that. Generally, a supply chain means a group of individuals and a network of companies who are involved in producing a product and then having it delivered to the consumer. It is called a “supply chain” because it’s somehow like a process, whereby the starting of the chain begins with the producers of the product (in other terms, raw materials), and then it will end with the product being delivered to the consumer. 

Normally, the supply chain deals with the supply of parts, materials, and services needed by consumers, to provide effective product services like repair and maintenance. 

Since it provides services, does that mean the supply chain also has its own management?

It sure does! Supply chain management (SCM) does not only manage the final products after going into the manufacturing process but it is also considered to be managing a broad range of activities, such as planning, controlling and executing product delivery to wholesalers, retailers and end customers (other words, the final person of the chain). 

Moreover, supply chain management is also considered an important and crucial process because, in order to achieve lower costs, supply chain management’s process must have an efficient production cycle with optimized supply chain results. 

Also, supply chains have different types of models too!

Yes, you read that right. There are a few supply chains model available to choose from. Companies will usually select the model depending on the structure of the company and the specifics that are needed for the company to achieve its goals.

Continuous Flow Model

For companies that produce products with fewer variations or modifications, the continuous flow model will be the right pick. It must be noted that the products must be in high demand, and it does not many varieties of the product. With this, the managers are able to monitor the production in a specific manner, and managers must always be aware of the inventory. The thing about the continuous flow model is, that managers must regularly stock up the raw materials to avoid a sudden halt in production.

Fast Chain Model 

From the name of the model itself, it can be understood that this model will be based on rapid changes or the latest trends in the market. Normally, companies or businesses that opt to use this model are the ones that want their products to immediately be out in the market before the trends die down. When this happens, they need to be quick on their feet, moving from ideas to prototypes and immediately to the market where the consumer can grab their hands on the fast-paced products. 

Flexible Model

For the flexible model, companies must be able to forecast and manage their productions accordingly. This is due to the demands of the production done using flexible models, as demands for products done through flexible models are usually seasonal or holiday merchandise. Hence, when it is seasonal or holiday merchandise, demands usually last during the seasonal or holiday period, and then there will be less to no demands at all when the seasonal period ends. Therefore, companies must be able to utilise their raw materials well to avoid waste of end products that do not get sold off due to low to no demands at all. 

There you have, a basic foundation of what supply chain services are, and the type of supply chain models available to choose from, depending on the requirements of the companies.