The main objective of supply chain management in Central America is to maximize the value of customer service and to achieve a sustainable and competitive advantage. Supply chain activities cover everything from product development to sourcing, production, and logistics. This also includes the implementation of the information technology systems needed to coordinate these activities.
When executing supply chain management in Central America, key activities and processes must be carried out in an efficient, (through fuel savings, cost reduction measures, etc.), and a timely manner. If this is not done, products and commodities will not be available to customers when they are needed. This, of course, will produce negative results for a company’s bottom-line.
How to achieve effective supply chain management in Central America.
There are four keys to achieving effective supply chain success in Central America. They are
I. A flexible approach at the global level
Constant changes in the marketplace demand that successful companies be flexible in their approach to conducting their business. They must make sure to exploit new sales channels, ensure flexible sourcing, and make certain to create and maintain a sophisticated global logistics network that guarantees them the support that is necessary. Additionally, integrating the strategic use of information into supply chain management in Central America will help companies to achieve and maintain business success.
II. Improvements through innovation
Good supply chain management means knowing current, and projecting future, needs. A company must be aware of both its strengths and its weaknesses. With this knowledge it is possible for organizations that are engaged in Central American trade to boost their innovative capacity through the formation of alliances, investment in technology, and the movement towards the digital transformation of the business.
Transparency in supply chain management in Central America is needed to keep customers informed about the status of their products and components, their key attributes and points of origin, as well as their environmental and social impact. This information should also be available to the supply chain management company’s workers as well.
IV. Consumer engagement
It is necessary to maintain an open dialogue with customers that have contracted for supply chain services in Central America. The effort that is made to do this will strengthen the link that exists between consumer and service provider, as well will justify the trust that the customer has decided to place in its supply chain management partner.
Trends in supply chain management in Central America
There are certain trends that logistics professionals in Central America will need to follow to maintain competitiveness in an increasingly complex business environment. Among these are:
- The presence of robots in distribution centers
Although automation is already a reality in many distribution centers around the world, the future will be one in which robotics will be increasingly employed in the supply chain management.
- Virtual Teams
Some of the largest companies, that once had staff located at each of their distribution centers, have made the switch to centralized planning. This clearly demonstrates that in the information age local sources are not needed to manage thousands of deliveries each day.
With the ability to send cargo and route plans directly to Warehouse Management Systems (WMSs), as well as to portable devices of truck drivers, a route planner working at a remote location could be appropriate and viable for many organizations.
- Supply Chain Sustainability
Over the past several years, the need for sustainability, a reduced carbon footprint and transparency in the supply chain has changed the way logistics companies in Central America view the concept of corporate social responsibility. Thanks to a growing base of suppliers that are specialized in these matters, more and more firms will integrate the concept of corporate social responsibility into their business strategies.
The companies that are involved in supply chain management in Central America that adhere to these trends will succeed in placing themselves among the world’s most successful service providers.
Learn about Loginter, a member of the Central American Group of Companies.
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