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Supply chain
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customer request
or indirectly, in fulfilling a
functions involved in fulfilling a customer request (product development, marketing, operations, distribution, finance, customer service)
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manufacturers to distributors, but also includes movement of information, funds, and products in both directions Typical supply chain stages: customers, retailers, distributors, manufacturers, suppliers (Fig. 1.2)
All stages may not be present in all supply chains
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Jewel Supermark et
Tenneco Packaging
Paper Manufacture r
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product is worth to the customer and the effort the supply chain expends in filling the customers request
Value is correlated to supply chain profitability
(difference between revenue generated from the customer and the overall cost across the supply chain)
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storage, transportation, components, assembly, etc.) across all stages of the supply chain
6 1costs 6 (information,
Supply chain profitability is total profit to be shared Supply chain success should be measured by total
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Custo mer Reta iler Distrib utor Manufact urer Supp lier 5/23/12
between two
successive stages
Customer order cycle (customer-retailer) Replenishment cycle (retailer-distributor) Manufacturing cycle (distributor-manufacturer) Procurement cycle (manufacturer-supplier) Figure (see previous power point) Cycle view clearly defines processes involved and the
owners of each process. Specifies the roles and responsibilities of each member and the desired outcome of each process. 5/23/12
10 110 directly
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Replenishment Cycle
All processes involved in Retail order trigger Retail order entry Retail order fulfillment Retail order receiving
11 111 replenishing
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Manufacturing Cycle
All processes involved in
12 112 replenishing
distributor (or
Order arrival from the distributor, retailer, or Production scheduling Manufacturing and shipping Receiving at the distributor, retailer, or customer
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Procurement Cycle
All processes necessary to ensure that materials are
13 113
Manufacturer orders components from suppliers to However, component orders can be determined
precisely from production schedules (different from retailer/distributor orders that are based on uncertain customer demand) manufacturers production schedule
PULL PROCESSES
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into one of two categories depending on the timing of their execution relative to customer demand order (reactive)
15 115 fall
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decisions relating to supply chain design more global view of how supply chain processes relate to customer orders
16 116 strategic
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Thank you
Presented by Sarvesh Kumar Shukla
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