In the second blog post I discussed some of the core frameworks of supply chains, in which time, labour, design, finance and communications all function simultaneously in order to create sustainable operations. In this next section I’m going to establish how these frameworks manifest in reality, specifically defining some of the title roles given to activities related to supply chains. While the information might be heavy on exposition it is also critical to identify as it helps to indicate how responsibilities are motivated, distributed and actioned over time.

1. Procuring
2. Storage
3. Supplying/Exporting

1.Procurement

Procurement can often be identified as a process of ‘purchasing goods or services’ and for those unfamiliar, categorising the role in such a way is an efficient yet limiting definition of the term. Procurement is a technical discipline which has its own comprehensive activities created in order to support supply chain life-cycles. The chartered institute of procurement (CIPS) (1) identifies activities associated with the term including the following:

• Sourcing:finding relevant suppliers (products and services), identifying requirements which are needed, establishing them as contractors, planning and analysing trends which will support operational practices. These activities can be thought of as ‘pre-contract’ activities.
• Management:once sources have been identified management practices are put in place that support contracts with suppliers. This can be practices such as: corporate governance, supplier relationship management, risk management and regulatory compliance.  Such practices can be thought of as ‘post-contract’ actions.

Both sourcing and management practices are there to support the aims and objectives of the organisation. Projects related to designing effective supply chains, collaborating and bench-marking marketing agencies are used as such aspects of such support. In the long term, these activities are there to ultimately support financial viability, whereby optimising costs and documenting savings are there to support sustainable operations.

Sources: https://www.theguardian.com/careers/careers-blog/why-you-should-consider-a-career-in-procurement

https://www.cips.org/Documents/CIPSAWhitePapers/2006/Definition_of_Procurement.pdf

2. Storage

Creating an infrastructure which securely stores goods is an integral part of supply chains. Warehouse operations that take into consideration the identity of goods (e.g. temperature controlled) and their requirements are of equal importance to the way they are transported and documented. Considerations of the movement of goods, how to organise a process of efficient practices and sustain an operation with minimal disruption is therefore key in recognising that holding goods is not just a routine practice but an active mechanism in the supply chain which requires careful management and decision making.

Warehousing has thus far been described as something which is fast-paced and rather slippery in terms of the consistent movement of goods. In addition to this, warehousing helps to monitor inventory items and can help to ensure suppliers and buyers have access to transportation services  – in which orders are fulfilled and delivered at a specific time. Any successful supply chain process requires a meticulous understanding of where the goods and services are at a given time – for storage systems, the warehouse helps to optimise this requirement. Intelligent technology, strong leadership skills and logistical knowledge has to make sense of the logic of the movement of goods in order to be of benefit to the market. It is only then, that storage practices can be effective in supporting the holistic nature of supply chain processes.

Sources: https://www.shopify.co.uk/encyclopedia/warehousing

https://intralogistics.tips/effective-storage-strategies-the-basis-for-successful-warehouse-management/

3. Supplying/Exporting

Supplying and exporting goods from seller to buyer requires the right documentation and a suitable freight forwarder. Charges associated with the export of goods is dependent on where the goods are being transferred too. For international trading agreements, the following charges are to be considered: freight costs, terminal handling, document fees, security surcharges, infrastructure charges, administration fees, packaging, delivery charge , customs clearance charges, valuation statement (if goods are over a certain amount) etc.

In addition to this factors such as delivery methods, duties/tax payments and who is responsible for insuring/paying the insurance of the goods are to be taken into consideration. Fulfilling the criteria of documentation and understanding the costs associated with supplying goods is clearly a job in and of itself – which requires an understanding between both supplier and buyer as to who is responsible for the goods at different times of the exporting process (specifically helpful when issues/challenges occur). For this, a series of regulations and guidelines will be put in place that are helpful when trying to maintain export practices on a consistent basis.

Characteristics of the products being supplied also carry with them their own expectations when deciding on suitable exporting practices. This is relevant when considering Dangerous Cargo (DG) and heavy cargo which may result in additional charges being applied. On top of this, certifications of goods such as fumigation and phytosanitary may be required alongside packing lists of the goods themselves.

Listing the exporting costs and practices may seem over-whelming but if anything they re-affirm the notion that the supply of goods is a holistic discipline which requires careful planning, management and analysis practices for effective results. The scale and detail that is required can often get lost when recognising that in practice the routines created to deal with these variables are very much active in the supply chain process. This takes us to our next section which looks at the roles of supply chain co-ordinators and inventory managers.

Source: https://www.gov.uk/guidance/international-trade-paperwork-the-basics#export-documentation