Cycle view of Supply Chain

Customer

Customer order cycle

Retailer

Replenishment cycle

Distributor

Manufacturing cycle

Manufacturer

Procurement cycle

Supplier
 SupplyChain Macro process in a Company

Supplier Company Customer

SRM ISCM CRM

• Source
• Market
• Negotiate • Strategic planning
• Price
• Buy • Demand planning
• Sell
• Design collaboration • Supply planning
• Call centre / back
• Supply collaboration • Demand fulfilment
office ops
• Order management • Field service
• Order management
 Supply Chain Uncertainty

• Quantity of product needed

• Response time that customers are willing to tolerate (QRT)

• Variety of products needed

• Service level needed eg. Dhabhawallas

• Price of product

• Desired role of innovation in a product, eg pen / refills vs disposable pens

 Drivers of Supply Chain Performance

• Facilities

• Inventory

• Transportation and logistics

• Information

• Sourcing

• Pricing
 Manufacturing Facility Metrics - 1

• Capacity

• Capacity utilisation

• Cost of production / unit OR Conversion cost / unit

• Theoretical flow / cycle time

• Actual average flow / cycle time

• Flow time efficiency

 Manufacturing Facility Metrics - 2

• Product variety / mix

• Volume contribution of Top 20 % customers & SKU’s

• Processing / set up / downtime / idle time

• Quality losses

• Quality TAT

• Average production batch size

• Product service level