Supply chain management is understood as the flow of goods and services, covering processes, systems, and people from the production from raw materials to its consumption. The following stages can be distinguished in this flow: production, delivery, distribution, and, sometimes, a return system (Handfield, 2021). One of the most critical processes is delivery since it is this process that involves the transfer of goods from the manufacturer to the consumer. Coca-Cola Company, a global supplier of beverages, is one of the most successful companies with a developed production and supply chain.
Delivery includes many expenses, which will also be included in the final cost of the goods. Overhead costs include payment of customs duties, courier services during purchase. In addition, some companies use free shipping to the buyer, storage, moving between warehouses, or labeling of goods. Material costs include directly paying for the delivery transport itself. Material expenses can consist of paying for air transportation, sending goods by train or by sea. Sometimes delivery may require the use of several types of vehicles at once, which significantly increases the final cost of the goods. Labor costs include the salaries of each employee involved in the shipment of goods: storekeepers, movers, logisticians, employees managing vehicles, and others.
In the delivery process, the client’s central values will be its quality, cost, and timing. The faster and more accurately the goods are delivered, the more satisfied the consumer. The company needs to debug each stage to improve the product delivery process. It is necessary to sign contracts with partners to set the minimum delivery cost. It is important to use high-quality software in order to build the logistics process properly. Managers should pay attention to the fact that the delivery company has different vehicle types for transportation and the most responsible attitude to the quality of delivery. In addition, the company should be able to create the proper logistics chain so that it cannot significantly increase the cost of the goods.
Reference
Handfield, R. (2021). What is supply chain management (SCM)? NC State University.