What You Need to Start Your Own Supply Chain

A supply chain is the network in which a company receives its wares, produce, and inventory from another company known as the supplier. However, the supply chain is more than investing into a supplier. The network involves all sorts of things ranging from the people in it, its activities and the resources used for it. Maybe you're interested in the supply chain and want to make a career out of it. If this is the case, then this article is for you. In this post, we'll be covering everything you need to know about starting your supply chain.

Assess your potential inventory

A supply chain all starts with a solid inventory. However, with so many types of businesses and the demand for certain supplies, you might not know what to model yours after. The first step is to determine your target audience. Who do you want to market to? Do you want to provide food to grocery stores? Are you looking to give construction companies the tools they need? You have a wide array of options to choose from. And since this is the first step, you can take as long as you need to figure out your niche.

Hire a fleet

Your next course of action for your supply chain is to get yourself a fleet. Preferably, you want to get a fleet of trucks. Keep in mind, however, that a fleet is one of the biggest investments you'll make during this process. Each truck can cost over tens of thousands each. You're likely going to need to take out business loans to cover the cost. Once you procure at least five trucks, you'll then have to put them on a fleet insurance policy. A fleet insurance policy allows you the same benefits as regular car insurance, except that you're allowed to put as many vehicles you want on it without any additional fees. Next, you need to equip your fleet with the proper safety and fleet management technology. Here's a quick list of what the technology you need:

• Tachographs
• Electronic logging devices
• Dash cams
• Anti-lock brakes

The most important piece of technology you need when managing a fleet is a GPS tracking system. A GPS tracking system is how fleet managers and owners are able to keep a constant watchful eye on your fleet. It can be a very advantageous asset to your fleet. So much so, it can help reduce costs, effectively plan out the routes and save on time.

Understand the basic components

There are five components of the supply chain; plan, source, make, deliver, and return. It's absolutely critical you learn and master these five components. You'd be amazed at how disorganized everything can be, especially when it comes to planning. Planning is to help control the manufacturing, sourcing is how you obtain your vendors, making is how the product comes into fruition, delivering is when the client or consumer receive the product and returns are when a defective product is returned. Obviously, there's a lot more to this than what's mentioned here, so be sure to consider speaking with an expert in your field before you go live and review a comprehensive guide on how the process works.