Supply chain function nowadays is presenting numerous opportunities to organizations for cutting down operational costs. It involves management of flow of goods and services from the producer all the way to the ultimate consumer. It also concerns itself with flow of information both ways; mostori from the consumer to the producer and also from the producer to the consumer. Supply chain has many players right from the producer to the consumer. The producer is a supplier to another fellow in the chain who in turn supplies to another supplier or an organization.
Supply activities involve transportation of materials into an organization, inside the organization and movement of finished good out of the organization. Basically this is logistics. Movement of goods into an organization is known as inbound logistics while movement of materials inside the organization is termed as internal logistics. Outbound logistics is movement of finished goods out of the firm. Supply also involves storage of materials. Location of facilities such as warehouse is also very important consideration in supply chain.
Just as to business, supply is very important to the military. In fact, the term logistics which is a major component of supply chain has its origin in military. Supply is important to the defense forces in that it helps them determine such critical issues as location of forces’ barracks and armories. Location of these facilities needs to be strategic to enhance the position of the officers while launching an attack to enemies or spying.
Sourcing and procurement of such materials as ammunition and guns need to be purchased from a reliable supplier. Quality here is paramount. Supply helps the armed forces department plan and make their purchases well in advance and store them in strategic locations. At any moment officers can be called to action and therefore the need to be ever ready.
Due to changing needs and requirements, DoD supply chain is evolving in a very big way. This change is being driven by the desire to increase efficiency in their operations. DoD has adopted use of information technology in managing their supply chain. Suppliers can now be contacted online, not to mention that their profile information is stored online. Defense forces officers can now use computers to monitor some operations in some area. For more info please visit these sites:- http://onlineammunitionstore.com/
DoD supply chain is also emphasizing use of lean practices such as six sigma technique of quality management. Such practices as outsourcing of non core activities are also being applied. Strategic collaboration is also being practiced.