Supply Chain

The Royal Spanish Academy (RAE) does not provide a specific definition for the term "supply chain." However, the supply chain refers to a set of processes and activities that range from the production of goods to their final distribution to the consumer. What is a Supply Chain in Logistics? In logistics, a supply chain refers to the interconnected network of processes and activities involved in the production, distribution, and delivery of goods and services, from obtaining raw materials to final delivery to the consumer. This chain therefore involves the coordination of various stages and actors, as a result of ensuring efficient flow of products throughout the entire chain. Types of Supply Chains Supply chains can vary significantly according to industry, type of products and services, and specific requirements of each organization: Linear: Characteristics: It is the most traditional model, with a linear sequence from raw material acquisition to final product delivery to the customer. Example: Manufacturing of consumer products. Integrated: Characteristics: Close integration between different links in the chain, where partners share information as well as collaboration more directly. Example: Collaboration between manufacturers and suppliers to optimize processes. Global: Characteristics: Involves operations and partners in different countries, with manufacturing and distribution internationally. Example: Multinational companies with operations in several countries. Agile: Characteristics: Focuses on flexibility and rapid response capability to changes in market demand. Example: Fashion industries with rapid production cycles to adapt to changing trends. Lean: Characteristics: Oriented to minimize waste and optimize efficiency, reducing inventories and improving processes. Example: Manufacturing with "just-in-time" production to avoid excess inventory. Functions Control Terrestre strategically uses the supply chain as an integral part of its logistics operation, capitalizing on its key functions to improve efficiency and quality of service it offers. Sourcing: Function: Acquire raw materials and components necessary for production. Use by Control Terrestre: Efficient negotiation with suppliers to ensure timely availability of key inputs. Production: Function: Transform raw materials into finished products. Use by Control Terrestre: Coordination to optimize production and minimize wait times, ensuring efficiency in cargo handling. Storage: Function: Store finished products before distribution. Use by Control Terrestre: Use of strategic warehouses to consolidate loads and facilitate efficient distribution.