What is Supply Chain?

UNDERSTANING SUPPLY CHAIN

What is Supply Chain?

A supply chain consists of all parties involved, directly or indirectly, in fulfilling a customer request.

Stages in typical supply chain –

• -      Customers
• -       Retailers
• -       Wholesaler / Distributors
• -       Manufactures
• -       Component / Raw material suppliers

Objective –  of supply chain is to maximize the overall value generated.

 

Supply Chain Decisions

-       Successful supply chains manage flows of product, information and capital to provide a high level of product availability to the customer while keeping costs low.

Supply Chain Decision Phases  

  1. Supply chain strategy or design

  2. Supply chain planning

  3. Supply chain operation

1. Supply chain strategy or design

• It is a long term approach
• Location of plant / office
• Output capacities determination
• Warehousing and logistics framework
• MIS
• Product development

2. Supply chain planning

•  Timeframe is between Qtr to year.
•   Supply Chain configurations are fixed
•  Increase Supply Chain surplus over planning time
• Forecasting of demand and cost + prices
•  Selection of suppliers (short term)
•  Subcontracting  of manufacturing
• Inventory policies
• Positioning and pricing + marketing

 3. Supply chain operation

• It has time horizon of weekly or daily
• PR / PO tracking
• OTD
• GRN / outward requisition
• Scheduling
• Replenishment of orders

Be tuned for more information

Thank you!

Avnish Kumar Gupta

Roll No. - 2002040

PGDIM-27