Problems involved in Logistic Support:
From the above generally this is evident that labour's unrest is common in the complete process and an effective SCM can only help decreasing these miscalculations and criticalities. Natural calamities and strikes do pose a difficulty for the manufacturer and indirectly increases the cost of items finally available to the consumers. Therefore what is your ultimate aim in this process of SCM? This is the response of the consumer for whom you made this happen, and side-by-side what is the influenced of the problems and criticalities on your product? It affects the costing, and this is what is illustrated in Figure
Logistics inbound and outbound both are very intricate in nature. A consumer sitting at the comfort of the room cannot virtually visualize how a packet of toothpaste attains him every time he utilizes it. What actually happens on ground may only be realised by a person who makes it happen that way. Once you begin thinking on it the various questions that arise are following:
- From where does the raw material come from?
- Who supplies it to you?
- What is the best course available to you in procuring the right material with in the cost per se from the available options? Who decides on that? You and the management.
- How is the material moved and where to?
- How do you store up this?
- What are the several contingencies involved in this?
- What if the stores don't reach on time? What is the option available to you?
- What would be the losses in production?
- What would be the losses in packaging?
- If the production channel breaks down, then what?
- How do you transport the finished goods in the time frame available to you?
- How shall your marketer's distribute or market the products?
- What shall be the response of the consumers to your product, your ultimate aim?
All of the above are interlinked and have a direct bearing on the net output of the firm. An effective SCM system in place wards off any such minor shortcomings that may run into problems and criticalities later.