What is an Extended Supply Chain?

What is an Extended Supply Chain?

Supply chain problems are a challenge for every company. Moreover, with increasing consumer demand, business people must be able to adjust between supply and supply. Companies are also required to move quickly in order to maintain a stable profit potential. If you can't adjust, then the company can suffer losses because of this problem.
Well, on this occasion, we will discuss about what is meant by extended supply cahain and the benefits of using it.

What is Extended Supply Chain

Before the supply chain or supply chain, companies often lost money as a result of shipping products that were not in accordance with the market. For this reason, the supply chain concept was started to be applied as an effort to reduce losses. If the application is appropriate and effective, the supply chain will increase the value of profits or profits. Thus, the company is progressing and developing in accordance with the vision and mission.

The supply chain helps connect all parties related to the production of goods. Not only the production process, distribution problems will be more effective when using the supply chain. Because, between one part to another part will be connected (integrated) in real-time so as to facilitate the coordination process.

Facts about the Use of Extended Supply Chain

Based on data from SAP Benchmarking and Customer Success Story, extended supply chains can improve a company's performance. For example, companies can increase their revenue potential by 1-2%. Inventory also increases up to 5-10% within a certain time. In contrast, days for inventory are reduced to 12%. And, the expedition process decreased by 35%.

These data certainly provide benefits to the company. This is because businesses can run quickly and are responsive to market needs. Thus, the company can take the right steps so as not to drown in the existing business competition.

Benefits of Using Extended Supply Chaim

After knowing what is meant by extended supply chain, now we discuss the benefits offered.

• Giving Satisfaction to Customers

The use of extended supply chains helps companies to understand consumer desires better. Through the supply chain, companies will know the goods that consumers need, and determine the right time to deliver the goods/services.

•  Adding Profit Value

When consumers are satisfied, they tend to give full trust. This means that consumers will be loyal to using the company's services, both in the long and short term. Thus, the potential to increase the amount of profit will certainly increase.

• Lower Expenses

Before getting to know digital technology, a lot of money had to be spent in enriching a product. Not only that, the company also messed around with a fairly complicated distribution problem. Now, after the supply chain, all of these things will be integrated into one system, so that expenses can be reduced.

• Maximizing Company Assets

Technology plays a role in running a company's supply chain. Like it or not, companies must also improve the quality of human resources to adapt to this system. The goal is clear, namely to familiarize yourself with technology for the realization of the extended supply chain process as desired.

• Understanding Market Conditions

Extended supply chain provides an illustration that the goods supplied are in accordance with market needs. This means that the process of identifying the products needed is better, and so companies can prioritize products that consumers are interested in. Thus, the profit potential can be increased as much as possible.

That's an explanation of what is meant by extended supply chain, hopefully it's useful. Further information about the extended supply chain can be found on the following website: https://www.soltius.co.id/id/special-offer/fastplan-extended-supply-chain-solution.