INNOVATION AND SOLUTIONS IN THE SUPPLY CHAIN ALLOCATION PROCESS

Abstract

In today's competitive environment, companies are trying to attain the goals of low cost, high quality, flexibility and more customer satisfaction. So they should know that for a company to remain competitive it is crucial to work with its supply chain partners. Traditionally supply chain management is the integration of key business processes from end user to original supplier, provides products, service and information that add value for customers to have long relationship with few reliable suppliers. The selection of suppliers is perceived as one of the most important decisions when buying and directly affects the operation of the supply chain. First of all, proper cooperation with suppliers is recognized as a strategic and vital part of supply chain management. The choice of a suitable supplier can affect the cost of purchase, which accounts for a significant part of the cost of the final product. The unpredictability of the business environment, new technological advances and fierce competition increase the need for a more reliable supply, a complex inventory system. The main goal of such a system is to balance costs and respond to demand. Inventory costs cover from 20 to 40 percent of the total value of the product. Therefore, inventory management is considered an important part of the supply chain management system. Keywords: logistics, supply chain, distribution, innovation, solutions.