Current Supply Chain Concept and the Broader Contemporary Value Chain Models
The broader contemporary value chain uses electronic data interchange (EDI) to relay the products’ information. However, the supply chain uses the blockchain technique to facilitate communication. The EDI used by the broader contemporary has raised issues regarding the security, integrity, and accuracy of the data when the information is exchanged between the partner supply chains. As a result, a business that involves high-value products has been positively affected by the falsification, theft, and counterfeiting of their products. Nevertheless, blockchain maintains the products’ digital components, making it difficult for fraudsters to tamper with the product. For example, pharmaceutical companies use blockchain to save the drugs on transition.
Primary Purpose of a Supply Chain
The primary purpose of a supply chain is to ensure that products and services are moved from their point of origin to areas that they are required. Since the supply chain involves the transportation of goods, the aviation industry ensures that goods are transported from one location to another. Moreover, this field is consistent and faster than other transport industries, making the supply chain convenient because of speed and reliability.
Explaining the Principles of An Integrated Supply Chain
The principles of chain management illustrate that firms should align their services according to their needs and demands. Additionally, products that are close to the customer should be differentiated, and a technology that allows multiple decision making should be adopted in supply chains. Overall, the process must cost-friendly, faster, and little damage to goods should be realized. As a result, customers will be satisfied, and the company will experience profits. As a result, few expenses will be experienced when compensating for the damaged goods.
Defining Manufacturing and Geographic Postponement
Manufacturing is converting raw material into a valuable finished product that can be used for the intended purpose. For instance, COVID 19 vaccines can be manufactured in the US and delivered to Africa via airplanes. Geographic postponement is a system where commodities are stored in strategic geographical locations to anticipate the customers’ demands. When the clients order goods, they are picked from a chosen warehouse and delivered directly to the consumer. For instance, commodities can be stored in a warehouse in the Netherlands because it is centrally located. Therefore goods can be transported to other parts of the world from the warehouse upon demand.