Models of Supply Chain
Session No.: 4
Course Name: Supply Chain Management
Course Code: D1UA303T
Instructor Name: Prof. Sulabh Agarwal
Duration: 50 Minutes
Date of Conduction of Class: 22-08-2025
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Quick question
Do you think of how the supply chain of a
fast-food chain (like McDonald’s) might
differ from that of a luxury car
manufacturer (like BMW)?
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At the end of this session students will be able to
LO- Discuss various models of supply
chains and their best practices and
challenges
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1. Evolution stages of SCM
2. Objectives of SC
Session 3. Activities
Outline
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Models of Supply Chain
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Cont’d…
Continuous Flow:
This concept suggests a seamless and uninterrupted flow of materials, information,
and products through the supply chain. It focuses on eliminating bottlenecks and
disruptions to maintain a steady and consistent flow.
Example: A bakery that produces bread continuously throughout the day to meet
customer demand without interruptions.
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Cont’d…
Fast Chain:
The fast chain model emphasises speed and rapid responsiveness in the supply chain.
It is often employed in industries where quick product delivery is crucial.
Example: Amazon Prime's two-day delivery service is an example of a fast-chain
model. Amazon prioritizes fast order fulfillment and delivery to meet customer
expectations for quick product access.
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Cont’d…
Efficient Chain:
An efficient chain focuses on optimizing processes and minimising waste to reduce
costs. The goal is to achieve maximum output with minimal inputs.
Example: The manufacturing of generic pharmaceuticals often operates with an
efficient supply chain model. Companies focus on cost-effective production and
distribution to provide affordable medications.
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Cont’d…
Agile:
The agile supply chain model emphasizes flexibility and adaptability to rapidly
changing market conditions. It is essential in industries with unpredictable demand.
Example: Smartphone manufacturers like Apple use an agile supply chain to quickly
respond to changes in consumer preferences and market dynamics. They adjust
production and sourcing based on real-time data.
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Cont’d…
Custom-Configured:
This model involves producing products based on specific customer requirements
and customization. It often leads to unique, made-to-order products.
Example: Custom-built luxury yachts are a good example. Each yacht is configured
according to the buyer's preferences, resulting in a unique product
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Cont’d…
Flexible:
A flexible supply chain can quickly adapt to various customer needs and market
demands. It combines elements of agility and customization to meet a wide range of
requirements.
Example: Fast food chains like Subway operate with a flexible supply chain. They
offer a variety of ingredients that can be customized to create individualized
sandwiches based on customer preferences.
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Activity 1: Think pair share
Identify the companies using following models of supply chain and discuss their
best practices and challenges.
a) Fast chain model
b) Custom-configured model
c) Efficient chain model
Group: 5-7 students
Time: 10 minutes
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Activity 2: Brainstorming
Identify the SC model used:
• Walmart keeps its prices low by purchasing in bulk, working closely with suppliers, and
running large centralized distribution centers. It focuses heavily on reducing costs and
ensuring products are always available on shelves.
• Zara continuously tracks fashion trends and produces clothes in small batches. New
designs are quickly manufactured and sent to stores within a few weeks, so customers
always see fresh collections.
• Dell allows customers to design their own laptops and desktops online. Only after receiving
an order does Dell assemble the product and deliver it directly to the customer, reducing
the need to hold large inventories.
• Hershey’s significantly increases production before festivals such as Halloween and
Christmas to meet the huge seasonal demand. Once the season passes, production levels
return to normal.
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Take away
After the completion, you can:
• Get an overview about the various models of Supply Chain
• Understand the applicability of each model in real world scenario.
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Next Lecture: Key
challenges and issues in
Supply chain
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Post assessment
• Complete the post assessment activity (MCQ based) reflecting in
your LMS
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