Through various technological advances in recent years, the nature of the worker supply chain has changed and adapted to the needs of employers, recruiters and workers dramatically. The worker supply chain is a crucial element to the business models of many recruiters and businesses across the UK and is key to their combined and individual success.
It is important, particularly if you are a freelance or contract worker, to understand what the supply chain is, how it works and how it may or may not impact you and your employment.
As an employer, it is likely to be more pertinent to know how the supply chain has evolved into over the years and the consequences of this on the production and manufacturing aspects of the labour market. With Solutio changing the way supply chains are managed through our payroll software and solutions, understanding the very concept of the supply chain is key.
Supply Chains Explained
The ‘supply chain’ in any business or industry, generally refers to the network that exists between a business and the suppliers that is has in order to be able to manufacture and then distribute the company’s product or service out to the wider market and to consumers.
Each link of the ‘chain’ represents the stages that are undertaken in order that the end product is delivered to the customer or the other party that something is being sold to. The supply chain itself requires extensive management in order to ensure that all associated processes run as smoothly as possible an in a way that maximises profitability and business success. It is therefore crucial that the payroll solutions and technology or supply chain management solution used can help you manage each of these aspects.
The chain can include manufacturers, retailers and suppliers and in essence, a company will have a supply chain in any case they sell a company product that must then be delivered to a consumer or end customer.
Flow of Manufacturing
When it comes to the worker supply chain, the flow of manufacturing or service delivery costs is key, and it specifically relates to the process of using working labour and materials in order to create and complete the product or necessary service which can then be provided to the end customer.
If there is a supply chain management system implemented for this, it can help to manage staff better and significantly reduce the cost as well as the difficulties that may be incurred as a result of the manufacturing process. Business who often find such systems particularly helpful are those that may need a manufacturer for many different parts of a product they are selling.
For example, a manufacturer of clothes who needs to move base materials into production as the first step, such as fabric, buttons and zips. There will also be labour costs to take into consideration in order to produce the clothes, run the machinery, test the products, clean the premises and so on.
Once the products are manufactured, there will come the packing and distribution stage, as after products have been completed, they will need to be stored safely until they are then sold on to a customer, which in the case of the clothing manufacturer is likely to be a clothing retailer. This is all something always worth considering when you set up a new company, as for many, these details and the nature of the supply chain is easily overlooked.
The Development of the Worker Supply Chain
The technological advancement over the last two decades have altered the way in which supply chains tend to work in modern times. This is because as demands have increased, traditional supply chain solutions have found it difficult to keep up, with it difficult to easily be able to get goods and information from one part to another of the supply chain quickly without too much if any manual effort to do so.
There has also traditionally been room for error due to a lack of transportation management as well as inventory management. In an increasingly customer-oriented market place, the old supply chain system started to cause problems.
Supply Chain Management Systems
As a result of the demand driven economy, more sophisticated systems were created, which recognised the fact that the supply chain is evocative of a collection of disparate webs, that need to have the ability to be accessed at any point of day or night, with consumers in the very epicentre of this web, and who remain at the most important part of the chain.
Systems and technology such as Solutio allow companies, recruiters and workers to easily and efficiently manage any relevant aspect of the worker supply chain, pertinent to them and their specific role.
This helps develop businesses and improve productivity and efficiency. For example, a recruiter may need to quickly audit the number of hours worked by a group of workers. Rather than having to manually check timesheets, Solutio’s payroll software for recruitment agencies enables them to quickly manage everything via a mobile app.
Cloud Technology in the Supply Chain
In terms of supply chain management systems, it is becoming increasingly common for could and online platforms and solutions to be utilised. This includes cloud technology; This type of technology allows companies to efficiently manage the supply chain in a low cost, scalable manner.
It also deals head on with the potential problems of inventory visibility, as the owners can identify opportunities growth as well a profit in a far more manageable way, and whilst providing greater security too
Moreover, modern supply chain management systems enable companies to use predictive analytics, as well as access date, which can help the company to be more collaborative in the type of work they do.
It also ensure that they are able to provide the very best service to their customers, by being able to quickly identify their needs, such as through using cloud technology, and also being able to do so in a far more accurate way than it was possible in the past.