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Supply Chain Process

By Raveendra Rao.K. MIM, Manipal
KRR Logistics Dec 2012

each performed at the interface between two successive stages of Supply Chain. Cycle view: The processes in a supply chain are divided into a series of cycles. 2. Push process intiated by a customer order where as push processes are initiated in anticipation of customer order KRR Logistics Dec 2012 .Supply Chain is a sequence of processes and flows Two views of Supply Chain 1. Push/Pull view: Supply chain processes divided into two categories depending on whether they are execute in response to customer order or in anticipation of customer order.

Cycle view of Supply Chain Process Customer Customer order cycle Retailer Replenishment Cycle Distributor Manufacturing Cycle Manufacturer Procurement cycle Supplier KRR Logistics Dec 2012 .

KRR Logistics Dec 2012 .

error free websites KRR Logistics Dec 2012 . telephone. less counters.Customer Order Cycle Customer initiates the process. Process includes • Customer arrival – walk in. less telephone lines. internet • Customer order entry • Customer order fulfillment • Customer order receiving From Supply Chain point of view the main component of the process is customer arrival – removing bottleneck in customer arrival(rush.

The process includes • Retail order trigger • Retail order entry • Retail order fulfillment • Retail order receiving KRR Logistics Dec 2012 . A replenishment cycle triggered by out of stock/low stock situations at retailer inventory.Replenishment Cycle Replenishment cycle occurs at retailer/distributor interface. but now retailer/distributor is the customer. initiated at retailer inventory. It is similar to customer order cycle .

distributor. Manufacturing cycle is triggered by customer order (eg. delivery time.Manufacturing Cycle Occurs at Distributor/retailer and manufacturer interface. sequence. retailer or customer KRR Logistics Dec 2012 . retailer or customer • Production Scheduling – variety. replenishment orders from retailer (eg. HUL. Dell). Process involves • Order arrival from finished goods warehouse. P&G). quantity. assembly(Dhaba food preparation) • Manufacturing and shipping • Receiving at the distributor. or by the forecast of customer demand and current product availability in finished good’s warehouse.

and if lead time is too long . supplier has to work on forecasts. retailer demand. KRR Logistics Dec 2012 . Its necessary for suppliers to be linked to manufacturing schedule. forecasts. Initiated by component inventory. RM inventory.Procurement Cycle Procurement cycle occurs at the manufacturer/supplier interface and includes all processes necessary to ensure the materials are available for manufacturing to occur according to the schedule.