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Supply chain management - Coggle Diagram
Supply chain management
Complex
Requires
Effective planning
Management
Accurate forecasting
Departmental co-operation
'Un-siloing'
Partners
Agile response
Investment
Time
Money
Optimise all elements
Throughput efficiency
= value-adding time / throughput time x 100%
No universal solution
Work for you
Perfection is unlikely
Project cost management
Technology implementation
Compatible with business strategy
Bullwhip effect
Demand fluctuations
Demand uncertainty
Customer demand increases
Retailer orders more
Wholesaler orders more
Manufacturer builds more
Materials supplier stocks more
Counteract
Smaller, more frequent orders
Reduce lead times
Share demand information
Limit promotions
Creates demand surges
Reducing supply chain stages
Five primary processes
Outbound logistics
Sales and marketing
Operations
Service
Inbound logistics
Definition
Materials / Production / consumer
Source goods
Make goods
Sell to distribution
Sell to consumer
Dispose if unsold
Sell to consumer
Vertical supply chain
Three questions
Direction of further integration
Up (suppliers)
Security of supply
Precious metals
Scarce resources
Reliability of supply
Restrict competitors
Control of cost
Down (Customers)
Control
Product
Quantities
Guarantee business
Access market data
Customer knowledge
Extent of integration
How far up
How far down
Competency
Narrow
One step up
One step down
Wide
Multiple tiers
Balance of integration
Tier capacity
Structural imbalance
Seasonal capacity
May have to sell to competition
Economic scales