Supply Chain management - Coggle Diagram
Supply Chain management
What is a supply chain
A supply chain, in other words, extends from the original supplier or source to the ultimate customer.
five primary processes
on which its supply chain framework is built:
These are the activities associated with collecting, storing, and physically distributing the product to buyers (finished goods warehousing, material handling, freight delivery, order processing, and scheduling).
Sales and marketing.
Within a supply chain context, these are the activities that induce buyers to purchase a product and enable them to buy it (advertising, promotions, sales force, quoting, channel selection, channel relations, and pricing).
Activities associated with transforming inputs into the final product form (machining, packaging, assembly, equipment maintenance, testing, printing, and facility operations)
These are the activities associated with receiving, storing, and disseminating inputs to the product (material handling, warehousing, inventory control, transportation scheduling, and returns to suppliers).
This refers to the activities associated with providing service to enhance or maintain the value of the product (installation, repair, training, parts supply, and product adjustment).
According to Debra Hofman, an analyst with AMR
Research Inc., best-in-class companies share these three traits:
. They increase demand visibility.
They isolate high costs.
They aim for balance.
“Top supply chains all have the ability to respond quickly to shifts in demand with innovative products and services.”
To address how much of the supply chain one organisation should own, there are three sets of decisions to make:
The extent of the integration
The balance of the integration
The direction of any further intended integration