Are you running a logistics or supply chain organisation in the United Kingdom or Wales? Have you ever wondered how new and modern supply chains are different from old supply chains? A supply chain as you might know is a global network that ensures the delivery of services of supplies domestically in addition to international delivery. Due to supply chains, it is possible for customers to get the finished goods that are completed from raw materials. Supply chain companies use a certain structure of network of productive information channels and transportation. This basic supply chain of any product involves raw materials, producers, retailers, and customers.
But what is the difference between the supply chains that existed in the old days and the European delivery and pickup services today? In this post, let us help you explore this in detail. This post will enhance your understanding to run your same day courier UK Company more efficiently.
Modern Vs Traditional Supply Chains: What is the Difference?
In any supply chain network, there are often three types of entities involved such as:
- The supplier that provides the raw material to the producer. Suppliers are also responsible for providing components and energy to the producer of goods.
- It is the responsibility or task of a producer to complete the finished goods. For that purpose, producer always uses his resources and employs people.
- The final part of the supply chain is a customer or a buyer who is aiming or desiring to purchase the finished product produced by the producer. These products can be of any range from clothes to shoes to batteries. The end customer needs the product to be shipped on the same day often.
Evolution of Supply Chain in a Nutshell
Now that we know which type of parties or stakeholders are involved in supply chains, let us find out more about the evolution of supply chain management. SCM began in the 20th century properly when it was given its name as “Supply Chain Management”. It began with the establishment of the networks needed for transportation of perishable food products. In the supply chain development, many stages are involved such as:
- Creation era
- Integration era
- Globalisation era
- Specialisation era
Now let us help you understand the process of SCM in more detail. SCM refers to the management of chains of finished goods that ensures smooth management of flow of goods and services. These goods reach the final customers with the help of logistics and transportation. In the current phase of SCM, many customers and suppliers are involved that depend on business procedures and technologies.
In the modern days, supply chain is a vital part of freight companies. This means that SCM delivers small value to medium and large sized businesses by providing the right technology and services.
What is Traditional Supply Chain Management?
The traditional supply chain management is not much different from modern SCM. The basic functions are the same for both SCMs. But in traditional SCM, several steps are involved to make this simple. For instance, we take the example of laptops to clarity this difference.
- In the first step, door to door courier UK companies do not play any part. In the first step, raw material is collected first to complete it into finished goods. The raw material could be of a single type or could contain many types of raw materials.
- Then comes the phase of collection of material from the suppliers. The producers have to get all the components of raw materials to ultimately provide transformed goods.
- Then comes the manufacturing phase in which the manufacture starts and complete all the processes needed for producing the finished goods. In this step, there could be many procedures involved such as making paper and covering a book.
- Then comes the distribution part in which the finished products are delivered or distributed to customers.
- The last part of the purchase includes the purchase of finished products by the customer.
So, after seeing all these differences, what do you think is the main difference between the old and the new supply chain management? In the traditional SCM, the main focus is on production. This means that many freight or door to door parcel delivery companies improve the product quality. However, modern SCM allows different businesses to create partnerships.
In modern SCM, more modern and sophisticated technologies are incorporated for the purpose of innovation and quality. To explain further, we again take an example of a book. In the traditional system, book is manufactured from raw materials. Then content is printed and packed and shipped. In the modern supply chain, all these functions are reduced by producing an eBook. This shows that modern SCM is much faster and easier than the old SCM.