Supply

Supply in logistics refers to the process of acquiring, storing, and managing the materials, products, or services that a company needs to carry out its operations. This process is essential to ensure that supply chains function efficiently and effectively, ensuring that products or services are available at the right time and place. Types Direct: Involves the purchase of goods and services that are used directly in the production of final products. Examples include raw materials, components, and parts. Indirect: Involves the purchase of goods and services that are not a direct part of the final product but are necessary for the company's operation. Examples include office supplies, cleaning and maintenance services. Strategic: Focused on creating long-term relationships with key suppliers. This type of supply seeks to align supplier objectives with those of the company, promoting close collaboration. Operational: Refers to daily and lower-value purchases that are necessary for the company's continuous operation. It is more tactical and less strategic. Characteristics of Supply in Logistics Planning and Forecasting: It's fundamental to predict future demand to ensure that inventories are aligned with market needs. Forecasting and demand planning techniques are used. Inventory Management: Includes control and management of inventory levels to avoid both excess and shortage of products. This can involve techniques like Just-in-Time (JIT) and safety inventory management. Supplier Selection: Choosing appropriate suppliers who can meet quality, cost, and delivery time requirements is crucial. This involves evaluation and negotiation with potential suppliers.