CHAPTER 10 SUPPLY CHAIN MANAGEMENT FOR: MISS MUSRAMAINI BM1114B

BASIC OF SUPPLY CHAIN

The average company spends nearly half of every dollar that it earns on production In the past, companies focused primarily on manufacturing and quality improvements to influence their supply chains

THE SUPPLY CHAIN HAS THREE MAIN LINKS:

1. Materials flow from suppliers and their upstream suppliers at all levels 2. Transformation of materials into semi-finished and finished products through the organization s own production process 3. Distribution of products to customers and their downstream customers at all levels

TYPICAL SUPPLY CHAIN

Supplier s supplier

Upstream

Customers customer

Supplier s supplier

supplier

manufacturer

Distributor

retailer

customer

Customers customer

downstream
Supplier s supplier

Customers customer

FIVE BASIC SUPPLY CHAIN MANAGEMENT COMPONENTS

plan

source

make

deliver

return

 Plan All companies must have a plan in order to meet customer demand for products and services. Source In order to have a continuous supply of products and services, we must choose a good supplier. Make - The company must be able to produce their own products and services. Deliver The supplier must be able to supply their products in order to meet customer demand. Return Most problematic step. Companies have to receive defective and excess products and support customers who have problems with delivered products.