Physical Supply

What is Physical Supply?

Physical supply is a crucial aspect of logistics that involves the movement and storage of raw materials from their supply sources to the manufacturing facility. It plays a vital role in ensuring a smooth and efficient production process.

The first step in physical supply is the identification and selection of reliable supply sources. This involves finding suppliers who can provide the required raw materials in the desired quantity and quality. It is essential to establish strong relationships with these suppliers to ensure a steady and consistent supply of materials.

Once the supply sources are identified, the next step is the transportation of the raw materials to the manufacturing facility. This transportation can take various forms depending on the distance, quantity, and nature of the materials. It may involve trucks, trains, ships, or even airplanes. The choice of transportation mode depends on factors such as cost, speed, and the specific requirements of the materials.

During transportation, it is crucial to ensure the safety and security of the raw materials. This may involve packaging them properly to prevent damage or spoilage during transit. It may also involve implementing security measures to protect the materials from theft or unauthorized access.

Upon arrival at the manufacturing facility, the raw materials need to be stored appropriately. This involves finding suitable storage facilities that can accommodate the materials and provide the necessary conditions for their preservation. Factors such as temperature, humidity, and ventilation need to be considered to prevent any deterioration or degradation of the materials.

Efficient inventory management is another critical aspect of physical supply. It involves keeping track of the quantity and location of the raw materials in the storage facilities. This helps in ensuring that the materials are readily available when needed for production and avoids any delays or disruptions in the manufacturing process.

Overall, physical supply is a complex and multifaceted process that requires careful planning, coordination, and execution. It is essential for ensuring a steady and uninterrupted flow of raw materials to the manufacturing facility. By effectively managing the movement and storage of these materials, companies can optimize their production processes, reduce costs, and meet customer demands efficiently.