Elaisa Mae V.

Sebastian
BSACC-1 (BLK 1)

MODULE 5: SUPPLY CHAIN MANAGEMENT AND LOGISTIC

Lesson 1: Supply Chain
ACTIVITY 5

QUESTION:
1. Explain the following according to the attached link from our lesson.
a) Basic Supply Chain
Basic flows that bind the supply chain entities together include flows of physical
materials and services from supplier to end customer to raw materials suppliers,
movement of information back and forth throughout the chain, and reverse flow of product
returned.
A basic supply chain in this figure is made up of these entities
•Seller is a supplier who provides goods and services or a person or organization with
whom the buyer does business, their generic term in marketplace is sailor.
•Supplier provides material, energy, services or components for a product or service such
as plastic, fabric, electric, wiring or aircraft.
•Producer is the who receive the components from the seller to produce a finished good or
services such as shirts from fabric, crockery from plastic, power from electric wiring or
provides transportation through aircrafts
b) Strategies
There are 3 types of supply chain strategies
•Stable supply chain strategy is appropriate for chains that are focused on execution
efficiencies and cost performance, use simple connectivity technologies, and have little
need for real-time information, such as a table salt manufacturer who uses scaled
production and dedicated capital assets.
•Reactive supply chain strategy When a supply chain responds to demand from a trade
partner, such as a maker of sports team attire for fans, more products are required when
the team advances to the next round, but demand for the losing team essentially vanishes.
•Efficient reactive supply chain strategy focuses on the efficiency and cost management of
total supplied cost of finished items, such as in supermarket chain distribution centers,
where logistic providers and manufacturers collaborate to replace goods sold in stores in
less than 24 hours.

c) Flows of Supply Chain

There are four flow and supply chains.
•Information Flows includes invoices, sales, literature, specification, receipts, orders, and
rules and regulations.
•Primary Cash Flow includes payment of product and supplies.
•Primary Product Flow includes material, components, supplies, services and finished
products.
•Reverse Product Flow includes return for repair, replacement, recycling, and desposals.
d) Supply Chain in Manufacturing and Services
Supply chain in Manufacturing consider a complex manufacturing supply chain model that
appears in corporate supply chain. In this model, you will notice the second tier of supplier
and more distribution centers and customer. These suppliers supply materials as well as
service. You put the manufacturing at the center and suppliers of components to the
immediate left the tier one supplier have their own suppliers in tier two. For example, tire
one supplier might be a wholesale food distributors that purchase flour from its own
supplier.
This supply chain for flour starts from farmer wheat failed which is supplied to the food
distributors processed in a plant shipped to wholesaler and distribute it to the store. No
matter how far you travel toward the left, you will never run out of new tiers of supplier.
Primary product flows from the left to right and primary cash flows from right to left.
Supply chain in Services
Initially the supply chain model was developed for manufacturing but the service industry
has supply chain too. A few example of service industries our electricity provider, legal
adviser, real state, construction, software house, and even federal government. in its
broadest sense service industries include all organizations except farming, mining and
manufacturing. Below exhibit illustrate the supply chain of an electric utility it received
products and services supplies and dispenses its service to home customer, commercial
customer and to other utilities.
e) Supply Chain Integration and Differences
When a company wishes to grow through a vertical integration it is seeking to strengthen
its supply chain reduce its production cost capture upstream or downstream distribution
channels. However, when a company wishes to grow through a horizontal integration it is
seeking to increase it size, diversify its product or service, achieve economies of scale,
reduce competition or gain access to new customers of the same market.