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SCM_Chap2

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18 views13 pages

SCM_Chap2

Uploaded by

suraj rouniyar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Unit-2

Supply Chain Structure


Factors affecting Supply Chain
Structure
• Uncertainty Aspects
• Information technology
• Communication tools
• Planning tools
• Relationship with suppliers
• Relationships with customers
• Value added process
Efficient (Supply-to-stock)
• A supply to stock is one where the supply
channel is set for maximum efficiency.
• That is, inventories are used to achieve good
economies by allowing economical production
runs, purchasing quantity, batch order
processing and transporting in large shipments.
• Demand usually met from inventories, but
careful control holds inventory levels to a
minimum.
Responsiveness (Supply-to-order)
• A supply to order one where the supply
channel is set up for maximum responsiveness.
• The channel features are excess capacity, quick
changeovers, short lead times, flexible
processing, premium transportation, and single
order processing.
Supply
Chain Type Channel Design Characteristics

Efficient Economical Production runs


Supply Chain Finished goods inventories
(Supply-to- Economic buy quantities
stock)
Large Shipment sizes
Batch order processing

Responsive Quick Changeovers


supply chain Short lead times
(Supply-to- Flexible processing
order)
Premium transportation
Single order processing
Selecting the Right Supply Chain Strategy
Functional Innovative
Products-- Products--
Predictable Unpredictable
demand demand
Low
margin
Efficient Staple food
supply chain products

Electronic
Responsive equipment
supply chain
High
margin
Push-Based Supply Chain
• A push-model supply chain is one where
projected demand determines what enters the
process
• Manufacturer demand forecasts based on
orders received from the retailer’s warehouses
• Under a push system, companies have
predictability in their supply chains since they
know what will come when – long before it
actually arrives
• In push systems, work release is based on
downstream demand forecasts.
• Keeps inventory to meet actual demand
Pull-based supply chain
• A pull strategy is related to the just-in-time school
of inventory management that minimizes stock on
hand, focusing on last-deliveries.
• Under these strategies, product enter the supply
chain when consumer demand justifies
• One example of an industry that operates under
this strategy is a direct computer seller that waits
until it receives an order to actually build a
custom computer for the consumer.
Commodity centric supply chain

• Commodity chains cover a range of steps from


the primary producer to the final producer,
through collection, primary processing,
wholesale, export and import, further
processing or packaging and retail.
Supply chain for emergencies
• In order to make the affected areas receive urgent relief
service timely accurately after disasters, the effective
operation of emergency logistics and quick response to the
urgent demands in the affected areas is very critical.
• Some of the critical points in the supply chain emergencies
are:
• The urgent relief services are very diverse and urgent
• The accurate and real-time urgent relief demand
information is almost inaccessible
• The benefits of emergency logistics operation are always
weakened
• Government and the market participate in the emergency
logistics service together

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