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Understanding The Supply Chain

A supply chain consists of all stages involved in fulfilling a customer request, from raw material suppliers to manufacturers to distributors to retailers and customers. The objective is to maximize overall value by managing flows and decision-making across stages. Key stages include procurement, manufacturing, replenishment, and customer order fulfillment, with information and funds constantly flowing forward and backward between stages.

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Aakanksha Anand Bedi
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51 views

Understanding The Supply Chain

A supply chain consists of all stages involved in fulfilling a customer request, from raw material suppliers to manufacturers to distributors to retailers and customers. The objective is to maximize overall value by managing flows and decision-making across stages. Key stages include procurement, manufacturing, replenishment, and customer order fulfillment, with information and funds constantly flowing forward and backward between stages.

Uploaded by

Aakanksha Anand Bedi
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Understanding the Supply Chain

What is a supply chain?


A supply chain consists of all stages involved, directly or indirectly, in fulfilling a customer request. The supply chain not only includes the manufacturer and suppliers, but also transporters warehouses, retailers, and customers themselves.

What is a supply chain?


A supply chain is dynamic and involves the constant flow of information, production and funds between different stages. Each stage of the supply chain performs different processes and interacts with other stages of the supply chain.

What is a supply chain?


A typical supply chain may involve a variety of stages.
Customers Retailers Wholesalers/distributors Manufacturers Component/raw material suppliers.

Stages of a Detergent Supply Chain

Supply Chain Stages

The Objective of a Supply Chain


The objective of every supply chain is to maximize the overall value generated. The value a supply chain generates is the difference between what the final product is worth to the customer and the effort the supply chain expends in filling the customers request.

Supply Chain Profitability


Supply chain profitability is the total profit to be shared across all supply chain stages. The higher the supply chain profitability, the more successful the supply chain.

Supply Chain Management


Supply chain management involves the management of flows between and among stages in a supply chain to maximize total profitability.

Decision Phases in a Supply Chain


Supply chain strategy or design.
How to structure the supply chain. Location, capacities of production, and warehousing facilities.

Supply chain planning


Companies define a set of operating policies that govern short-term operations. Forecast market, inventories, subcontracting of manufacturing.

Supply chain operation

Supply Chain Operation


Make decisions regarding individual customer orders. Firms allocate individual orders to inventory or production Shipments, delivery schedules of trucks.

Process View of a Supply Chain


A supply chain is a sequence of processes and flows that take place within and between different supply chain stages and combine to fill a customer need for a product. Cycle view Push/Pull view

Cycle view
The processes in a supply chain are divided into a series of cycles, each performed at the interface between two successive stages of a supply chain.

Cycle View of Supply Chains


Customer
Customer Order Cycle

Retailer
Replenishment Cycle

Distributor
Manufacturing Cycle

Manufacturer
Procurement Cycle

Supplier

Cycle View of Supply Chain Process


Customer order cycle Replenishment cycle (at retailer/distributor) Manufacturing cycle (distributor/manufacturer) Procurement cycle (manufacturer/supplier )

Customer Order Cycle

Replenishment Cycle

Manufacturing Cycle

Procurement Cycle

Push/Pull View
The processes in a supply chain are divided into two categories depending on whether they are executed in response to a customer order or in anticipation of customer orders. Pull processes are initiated by a customer order, and push processes are initiated and performed in anticipation of customer orders.

Push/Pull View of Supply Chain Processes


The push/pull boundary in a supply chain separates push processes from pull processes.

Push/Pull Process for the L.L. Bean Supply Chain

Cycles in Dell Supply Chain

Push/Pull Process for Dell Supply Chain

The Importance of Supply Chain Flows


There is a close connection between the design and management of supply chain flows and the success of a supply chain. e.g.) Dell has only 10 days of inventory contrast to other pc makers of 80 to 100 days. The success of the Dell supply chain is facilitated by sophisticated information exchange. (customized web pages) Outsourcing

Dell Supply Chain Stages

Examples of Supply Chains


7-Eleven ( A Convenience Store) (Japan)
One of the companys objectives is to micromatch supply and demand by location, season, and time of day. Fresh food and distribution center.

Toyota (A Global Auto Manufacturer)


Global production and distribution network.

Examples of Supply Chains


Amazon.com (An E-Business)
Why is Amazon.com building more warehouses as it grows? How many warehouses should it have, and where should they be located? What advantages does selling books via the Internet provide over a traditional bookstore? Are there any disadvantages to selling via the Internet? Why does Amazon.com stock best-sellers while buying other titles from distributors? Des the Internet channel provide greater value to a bookseller like Borders with retail outlets or to an ebusiness like Amazon.com?

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