Hello my friends, my friends Logistic Beings! My name is Carlos Menchik, senior composer at PROLOG, training and consulting and we brought one more subject here that generically appears a lot in consultations that we receive mainly to understand what supply chain is all about or supply chain management. Management of supply chains and how we live here with quality content that we deliver to you Ser Logístico that I would like to place an order.
Please, enjoy now at the beginning of the video and already click on the bell and subscribe to our channel it is very important for us your feedback through your subscription in your comment including your like he about the content of the video is our exchange here content and you please give me your subscription on the channel there and follow us and stay informed after all when you subscribe from that you receive the information and new videos which we have had weekly videos here on ours. Having established this exchange, please continue with our content. A supply chain is actually an evolution it is a evolution than the logistics that it has been over time, realizing that working only internally does not reach the level of competitiveness that the market is generally demanding.
The market including you as a consumer demanding low prices and fast responses to consumption. So the logistics when I was looking at the link, the link realized, look at this here, I really can't get there, and then I started looking for an evolution of this and the evolution of logistics it is the integration of the supplement chains that is basically this scheme that we are going to show here starting with the most primary suppliers. For example, if you are buying a car, maybe this supplier here could be the bauxite mine, an iron ore producing which is being industrialized along the links in the chain that we are outlining here.
So primary suppliers can have here hundreds of suppliers. There are cases like retail, a retail supply chain, having thousands of suppliers. Then it starts showing complexity.
That is why it is so difficult to reach the point of management maturity in the company to leave the local logistics and seek the integration of links, the integration of the chain of supplies. The primary suppliers left, go to an industry where they will make the transformation to join these products and develop some third product. Go to and there begins the distribution left industrialization now for distribution where I have wholesale distributors and then fractioning here, there can also be hundreds of distributors in Brazil, because this industry can have one with the reach national and it will distribute the whole of Brazil.
And Brazil is great! So it turns out that it needs to be geographically able to spread our product to be more close to the consumer through the wholesale servers. Even an increase in reaching retail.
When talking about retail, in an automotive industry, retail to whom? The dealership. So you will see retail, perhaps not so traditionally, supermarkets, but in shopping and retail, dealership and retail.
So this is a very generic scheme to fit any type of product. The retailer finally we end consumers here where they will always be looking for low prices and availability, we want the product as soon as possible and this chain we are talking about here it is a traditional chair and because it is traditional, it has an exchange here too, where a consumer delivers consumption information, where the flow of products comes from on the other side. So we can have information coming from one side so that the product flows through other side.
What is the difficulty, what is the mission of the manager or who participates in a supply chain? Is to arrive here at the consumer in a cheap and fast way. So this is the challenge because complexity starts.
Look at the number of links we have here. Obviously, in each link, if we can show here in each link, we have what we have in stock. So, we even have other stock-related videos if you click on the banner that will appear up here you will already have access to another video following this, talking about stock sizing, for example.
And then you will see the complexity that exists in management, because when you are talking here, there are different companies. Imagine if inside our own company we already have difficulties to synchronize operations, imagine looking for synchrony where it involves five or six links. Then, then, the evolution begins, for this is why I commented on the question of maturity in business management.
Maturity is fundamental in this, because as you progress in that direction, the next maturity step would be: "Will I be able to reduce the number of links? "For example, ecommerce, in one way or another it seeks to reduce links. So it is one of the ways to suppress links.
When we are deleting links, what am I doing? I'm getting to the supply chain mission, which is to increase speed, decreasing the time between the processes and, obviously, what results in what? Cost optimization, efficiency improvement and then the consumer has a happy face there, which is what the consumer is always looking for, greater availability, greater offer of varied products, according to his needs, at the time he wants and at the lowest possible cost.
So this is the our great challenge. And then I'm going to show you another detail, fixing this issue here in the chain, I'm going to delete it here to show the issue of stock within the jail. What happens?
What did we do here? In the same way that we saw . .
. I'm going to change the pen. In the same way that we saw and the supply chain, showing the links, we will show it as if it were also the suppliers primary products, here at the very end the consumer.
So here we are showing the supply chain. Within this chain, where perhaps the industry is here more or less in the middle, I ask you: if the consumer is here and the most primary supplier is on this side, which of the two sides has the greatest added value? Give some thought to where the added value is.
You realize that as a primary supplier, we are going to take an industry supply chain automotive, for example. Which is one of the most efficient chains we have. If you take steel, I don’t know when steel costs a thousand reais a kilo or ton let's suppose.
How much does a car cost, if a car costs 40-50 thousand reais and weighs 600-700 kg? So you can see that the added value of chain, it goes up. So the greatest added value is just close to the consumer.
If this is true and thinking in an integrated way in the chain, where do you would you put the stock? Thinking in an integrated way, where should the stock be? Should he be close to the supplier or close to the consumer?
It is this response that has determined all strategies within a supply chain. That is, to remove the stock from the consumer for cost reasons. It is much cheaper to put the stock back.
So what we've been doing all chains have pursued this. How do I push the stock back because it is more expensive up front. In this strategy of pushing the stock back in the automotive industry, for example, systemists have developed there, systemists have developed to be inside a site or close to the industry site, that the industry receives the semi-finished products practically finished, they just assemble.
So all this for seek greater efficiency and when we are pushing the stock back I'm pushing it in value and quantity I can have a little more quantity at my supplier. So what does it mean? That when we have a well-defined supply chain strategy, what are we looking for?
Seeking out push inventory to our supplier and that that supplier is close so that this process of replenishing is quick, the quickest possible to be able to have few stocks and, therefore, I mention them at various times, including the transport sectors, as it is important today a is fast. Transportation speed has never been more important because in this configuration here a stock also goes up to the truck, the stock is on wheels he cannot stop. Inventory is something that has to flow through this supply chain quickly to avoid costs because what is the goal here?
Lower the cost. And one of the main costs is that of inventory because it even slows down the supply chain. This is simple, it is easy to speak and write a powerpoint, but it is very complex to put this theory here in practice because it involves many many companies with different goals, sometimes with different strategies and with a very proprietary culture in which, for example, they do not want to share inventories because you think this could be a strategic handicap in the company.
These cultural issues that throughout the time management maturity as I said earlier will start to expire. I hope you enjoyed. I have been particularly successful there with you in viewing our videos.
I am very pleased with the feedback that you have in the data in the comments. It has helped us a lot in the comments, including to know which topics are more important, more relevant For you. I count on you again for your like in the video if you liked it, your comment and I would like to know if you could, comment there: Are you already using a supply chain strategy in your company or are you still in a more link-to-link logistics?
I look forward to seeing your comments and hope to see you on next video! Big hug!
