Supply Chain Management

Supply chains encompass the companies and the business activities need to design, make, deliver and use a product or service.  Businesses depend on their supply chains to provide them with what they need to survive and thrive.  Every business fits into one or more supply chains and has a role to play in each of them.  

The pace of change and uncertainty about how markets will evolve has made it increasingly important for companies to be aware of the supply chains they participate in and to understand the roles that they play.  Those companies that learn how to build and participate in strong supply chains will have a substantial competitive advantage in their markets.

Effective supply chain management requires simultaneous improvements in both customer service levels and the internal operating efficiencies of the companies in the supply chain.  Customer service at its most basic level means consistently high order fill rates, high on-time delivery rates, and a very low rate of products returned by customers for whatever reason.  Internal efficiency for organisations in a supply chain means that these organisations get an attractive rate of return on their investments in inventory and other assets and that they find ways to lower their operating and sales expenses.

The continuing globalisation of procurement and sales markets, as well as the worldwide distribution of production facilities require a holistic planning and optimisation of value-added processes and logistics networks.  Furthermore, customer management needs to be developed and integrated accordingly.  This leads to new challenges for executives and managers as they are forced to implement operational improvements and, at the same time, reduce cost without affecting customer service.  To manage the trade-offs between the conflicting goals involved, the activities need to be well-balanced and take all relevant aspects into consideration.

Paramount for businesses involved in a supply chain is the understanding that metaphorically speaking, the weakest link in the chain determines the market success.  This means that the compensation law of planning which was originally only focused internally upon an enterprise has been extended to comprehensive, internal and external supply chains.  It is obvious that this requires an increased collaboration between the enterprises involved in order to move the bottleneck to a higher level within the supply chain.


Working with Fox Procurement means that you will have a fully transparent supply chain and be assured that it will be managed optimally.