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Today’s supply chain consists of many processes, but they all have a single goal in common, and that’s driving value for both the shipper and the customer. Today, we’re talking about procurement logistics and procurement management, two vital processes that, when aligned, provide shippers with measurable benefits in cost-reduction and supply chain transparency.
What Is Procurement Logistics?
Procurement logistics is a little different than your average logistics process. Instead of procuring pre-manufactured products, procurement logistics involves the purchase of components used to manufacture products. Things under this heading include new parts, replacement parts, raw materials, auxiliary supplies, and other materials that support the manufacturing process.
In addition to sourcing and purchasing these items, procurement logistics is concerned with storing, managing, and shipping the products to and from the warehouse. Essentially, it’s an entirely separate part of the supply chain that’s solely involved with sourcing, purchasing, shipping, and storing all the components a manufacturer needs to make their products.
Most manufacturers have a procurement logistics team that oversees all communication and purchasing strategies to maintain transparency and keep costs as low as possible.
What Is Procurement Management?
Procurement management is the broader umbrella term under which all procurement processes are handled. Procurement management tasks might include getting bids, negotiating terms, and establishing contracts with third-party logistics providers (3PLs).
Each of these processes is an essential part of a manufacturing company’s success, but not every manufacturer can justify a full-time procurement management team, especially in the early stages. In this case, the best solution is to work with a 3PL experienced in this area, as they can fulfill many of these functions and provide access to all the resources you need to establish your company on solid ground.
2021 SUPPLY CHAIN TRENDS TO START PRACTICING NOW
With the new year comes new trends to watch. As supply chain technology, agility, and customer preferences come into sharper focus, we expect to see an acceleration in areas we’re already familiar with, along with a handful of newer concepts coming to the fore. After all, what’s a new year without a few resolutions?
When executed well, procurement management adds value that resonates throughout your organization. Procurement management precedes the traditional supply chain, and without it, the rest could not exist.
How DTS Helps
Having a trusted partner to manage procurement logistics gives you the strong foundations you need to grow and thrive. It provides you with more accurate data, facilitates better demand planning, cost reductions, shorter production cycles, and reduced time-to-market.
DTS World Cargo is an experienced third-party logistics provider with global experience, ensuring you of effective, efficient, and cost-effective procurement logistics and procurement management. We work closely with our clients to ensure we meet or exceed expectations, leveraging our years of experience to help you establish a reputation as a leader in your industry niche.
You can think of us as your own procurement management department—we’re always looking for ways to add value, and we are committed to complete transparency in every process. Our people, systems, and technology have a single purpose: to offer value to our customers and instill confidence that the job will always be completed to the highest standards.
In conclusion, you don’t have to be the biggest company in the world to make an impact. All you need is the right partners by your side, and anything is possible. Reach out today to learn more about how we help.