Types Of Supply Chain Services

Nov 13 2015

Supply chain can be defined as a vast network of individuals, organizations, resources, technology etc. involved in the manufacturing and distribution of a product. For an efficient supply chain, it is critical that each entity functions properly, including the vendors who supply raw material, manufacturers who create goods, warehouses that store finished products and distributors who deliver it to the end user. Even a minor limitation or problem can significantly affect the company’s growth, productivity and ultimately, profitability. For this reason, outsourcing your supply chain requirements can help to carry out your business activities more smoothly and efficiently.

Here are the common supply chain services that every business requires:

  • Inventory Management: This is a very important activity that impacts the efficacy of the supply chain and the financial stability of the company. It involves a complete supervision of the flow of goods from the manufacturers through warehouses to the retailers. Inventory management is essential to facilitate future consumption, sale or further processing of goods.
    Shipping: Choosing the right mode of transportation is important to reduce overheads and ensure that the goods reach the destination timely as well as safely. Depending upon the type of products to be shipped, volume, tariffs, delivery destination, distribution of finished goods through proper channels helps to maintain supply chain.
  • Order Fulfillment: It refers to the steps involved in the receipt, processing and distributing of orders to the customers. The process of order fulfillment includes packaging, labeling, categorizing and preparing the goods for shipping.
  • Contract Warehousing: In a contract warehouse, a business can lease the space for a fixed period of time for certain per square foot cost. The lease duration may vary depending upon the storage need of the business. Contract warehousing is usually cost-effective and offers many services to facilitate supply chain. Start-up businesses with minimal storage requirements can opt for this type of warehouse.
  • Public Warehousing: A public warehouse charges each client on the basis of the amount of goods store, warehouse space used and the services availed, such as inventory management, physical inventory counts and shipping. Businesses that experience sudden or seasonal increase in the demand of goods should choose public warehousing.

We, at Santos International, can help you maintain supply chain and increase the profit margins of your business. We offer comprehensive warehousing and freight forwarding services in Laredo, TX. For more information, you can call us at (956) 717 – 9707 or visit our office at 419 Grand Central Boulevard, Laredo, Texas 78041.