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Supply Chain - Coggle Diagram
Supply Chain
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Summary
It is often better to try to optimise performance across an entire supply chain rather than just concentrating on local optimisation of one tier in the supply chain.
The ‘bullwhip effect’ means that supply chains are naturally unstable and flow of goods or services through supply chains must be carefully managed.
Vertically integrated systems can often be inefficient because of inherent lack of flexibility and a removal of market forces.
Many supply chains are integrated through partnerships between organisations to improve their performance.
The trend has been towards more outsourcing within supply chains – but care has to be taken to outsource carefully and not outsource too much.
Supply partnerships are most effective if there is not too much of a power imbalance between parties. The supply chain must be managed for the benefit of all parties.
5 Primary
Processes
Inbound Logistics - Receiving, storing, disseminating inputs to the product (materials, warehousing, inventory, transport, returns to suppliers etc).
Operations - Transforming inputs into the final product (machining, packing, assembly, equipment maintenance, testing etc)
Outbound logistics - collecting, storing and distributing product to buyers (finished goods, warehousing, material handling, freight, order processing and scheduling)
Sales and marketing - induce buyers to purchase a product and enable them to buy it (advertising, promotions, sales, quoting, pricing, relations, marketing)
Service - providing service to enhance or maintain the value of the product (installation, repair, training, parts supply, adjustment)
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