Essential Supply Chain Management Conditions

Conditions of Supply

• Product/Service Price, Quality, and Delivery Times

• Policy Provider Stocks

  (Including customer deposits)

• Minimum Orders for Products and/or Delivery

  (Effect of transport)

• Type and Mode of Transport

  (Who manages?)

• Contact and Delivery Addresses

• Inter-Agency Partners

  (Including transportation, logistics operators, etc.)

• Date and Schedules

  Discharge Planning

  (Time windows)

• Packaging and Palletization

• Coding, Identification, and Related Documents

• Batch Management and Disqualifications

  (Traceability)

• Special Conditions of Product Conservation

• Rejection Criteria

  (Defined tolerances on price, quality, deadlines, quantities, references, etc.)

• Incident Procedure, Returns Due to Rejections

  (What to do with the product, who collects, what penalties (demerits), etc.)

Supply Management

• Delivery and Reception is the act of realizing the commitment made by the supplier to make available to the customer the goods ordered through the order, in the agreed quantity, place, time, and legal and technical conditions. We find that there are several variables that determine the efficiency of the process, and one of them, the Order, is perhaps the most important.
• The request must be a single process in which the supplier and manufacturer/distributor develop integrated information systems linking the physical flow of products. Many of the inefficiencies of the delivery-reception process arise from an inefficient internal process of the supplier and manufacturer/distributor, which prevents the interconnection between them.
• Coordination (from above)

Key Elements of Supply Management

1. Defining Terms of Supply

2. Advancement of Information on Provider References and Amounts

   (For example, a strong month and several indicative ones)

3. Monitoring

   Do not wait until the last day of the year to know the reliability of the supplier; know the criticality of delivery.

4. Alternatives to the Disposal of Incidents

   (Other vendors, other transport, other products, etc.)

5. Incidence Rate

   (Quantities, references, grades, deadlines, etc.)

   Supplier Evaluation System