Designing the

Supply Chain
Network
Designing the Supply
Chain Network
Sheila B. Baquiran
Assistant Professor
sbbaquiran@mmsu.edu.ph

This Photo by Unknown Author is licensed under CC BY-SA

 Objectives
At the end of the unit the student must have:

1. Identified the different Supply Chain Models

2. Explained it’s applications;
3. Elements of supply chain strategy; and
4. Discussed the components of supply chain management.
 Elements of
Supply Chain
Strategy
• The industry framework
• Your unique value
proposition
• Internal supply chain
processes
• Managerial focus
What is Supply Chain Modeling?

-represents a conscious attempt to

bring order into a supply chain to
achieve certain business objectives,
such as lowest supply cost, on-time
delivery and an ability to cope with
disruption
Why is Supply Chain Modeling important?
- Provides forward-looking businesses or
companies with the tools

They need to manage their supply line to:

• Control inventory
• Reduce costs
• Meet customer demand
• Increase efficiency
• Respond to demand
 Supply Chain
Models
• Agile Model
• Continuous Flow Model
• Custom-configure model
• Efficient Chain model
• Fast Chain Model
• Flexible Model
• Supply Chain Operations
Reference (SCOR) Model
 Agile Model
Continuous Flow Model
• refers to the use of • This model is ideal for
responsiveness, commodity manufacturing
competency, flexibility, and and companies that
quickness to manage how produce the same goods
well a supply chain entity constantly with little to no
operates on a daily basis fluctuations and high
demand stability.
 Efficient Chain Model
Custom-Configured Model
• The efficient chain
• Combination of the model is a model that
continuous-flow supply is best for businesses
that are in very
chain model and an competitive
agile supply chain markets and where end
to end efficiency is the
premium goal.
 Flexible Model
Fast Chain Model
• Best suited for • Best suited for
companies that industries that are
manufacture trendy characterized by high
products with short demand peaks followed
lifecycles. by extended periods of
low demand. 
 Supply Chain Operations Reference
(SCOR)

• Assess waste, establish standards and

continuous improvement in the Supply
Chain Management system
sComponents of
Supply Chain
Management
 Plan

Return Source

Deliver Make
The End