Supply Chain Structure
Supply Chain Structure
Supplier Management
Material Flow
Information Flow
Stock Deployment
Customer Management
Schedule / Resources
Conversion
Delivery
SUPPLIER MANAGEMENT:
CHOOSING THE SUPPLIERS
CONVERSION: THE RAW MATERIALS COLLECTED FROM THE SUPPLIERS ARE CONVERTED IN TO FINISHED GOODS
STOCK DEPLOYMENT:
SUPPLYING THE PRODUCTS TO DISTRIBUTORS.
Raw Materials
Tactical
Operational
Efficient supply chain management must result in tangible business improvements. It is characterized by a sharp focus on
Revenue growth Better asset utilization
Cost reduction.
suppliers and end users to participate. Together, they will form a supply chain work- ing group (SCWG). The SCWG will decide what spheres need to be isolated for supply chain redesign It will also mobilize design teams to undertake improvement efforts in the spheres
Step 1
The process begins with the SCWG defining issues that
need to be addressed. There can be in excess of 100 of these, so it helps to divide them into catego- ries. Issues are often presented in the form of a question.
limited to supply chain or pure logistics issues. At this point in the effort, its important to have an overall business context for structuring the supply chain effort.
requirements and how they link to product and supply chain design.
The SCWG should develop and maintain the issue
questions.
Where possible, deci- sions regarding issues are made by consensus of SCWG members.
In many cases, an issue resolution isnt known.
the overall effort.It would include schedules, priorities, financial flows, and a visionfor successful completion. 2. Plan for spheres. This would include definition of the spheres and design team assignments based on the challenges of making changes in each one. 3. Design Team charters. The charters should include the goals and objectives, resources, schedules, and issues that should be addressed
outside goods and services. It requires mobilizing internal teams as well as partnering with outside suppliers. focus on cycle time reduction, building a just-in-time capa- bility all along the supply chain. Partnerships will work to remove wasteful cycle time at all stages. supply chain functions will enable companies to focus on core competencies.