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The Supply Chain of perfect Bread

3.1 Introduction:

A supply chain consists of all parties involved, directly or indirectly, in fulfilling a customer request. The supply
chain includes not only the manufacturer and suppliers, but also transporters, warehouses, retailers and even-
customers themselves. A supply chain is dynamic and involves the constant flow of information, product, and funds
between different stages. These supply chain stages include that customer, retailers .Wholesalers/distributors,
manufacturers and component/raw material supplier each stage in a supply chain is connected through the flow of
products, information, and funds.

The objective of every supply chain should be to maximize the overall value generated. The value of a supply chain
generates is the difference between what the final product is worth to the customer and the costs the supply chain
incurs in filling the customer request. The higher the supply chain profitability, the more successful is the supply
chain. Supply chain success should be measured in terms of supply chain profitability and not in terms of the profits
at an individual stage. Effective supply chain management involves the management of supply chain assets and
product, information and fund flows to maximize total supply chain profitability.

1. Customer Order cycle:

The customer order cycle occurs at the customer/retailer interface and includes all processes directly involved in
receiving and filling the customer¶s order. In this cycle there the retailer takes the order from the target customer.
The Perfect Bakery can follow those steps.

Customer Arrival

Customer Order Entry

Customer Order Fulfillment

Customer Order Receiving

2. Customer Arrival:
The term of customer arrival refers to the customer¶s arrival at the location. In this term
the customer can give their order to the retailer.

3. Customer Order Entry:

The term customer order entry refers to customers informing the retailer that they want to
Purchase the bread and retailer allocating products to customers.

4. Customer Order Fulfillment

In this term the retailer will have to fulfill the demand of the customer for Perfect Breads. For this the retailer will
have to inform to the Perfect Bakery to produce those amount of bread.

5.Customer Order Receiving:

This is the last stage of Customer Order Cycle. In this stage the customer of Perfect Bread
receive the order.

Manufacturing Cycle:
Perfect Bakery follows their own manufacturing process. They follow several steps in their manufacturing process.
Perfect Bread is a demandable bakery item in this area. Everyday manufacturing worker¶s are very busy their
manufacturing process. The manufacturing of Perfect Bakery is typically occurs at the distribution/manufacturing
interface and includes all process involved in replenishing distribution inventory. The Perfect Bakery follows those
steps in their manufacturing process.

Order arrival

Production scheduling

Manufacturing and delivering

Receiving

1 Order Arrival:

Order arrival is the first stage of manufacturing cycle. Here manufacturer received order in local market demand.
The manufacturer produced their future demand. When marketer¶s complete order receiving of Perfect Bread then
company produced their product.

3.3.2 Production scheduling:

This process is similar to the order entry process. In the replenishment cycle where they provides their inventory of
Perfect Breads are allocated to an order. In this stage the retailer provide the quantities of Perfect Breads and
duration of time. The manufacturer produces the product in fixed time.

3.3.3 Manufacturing and Delivering:

This is the third step of manufacturing cycle. This process is equivalent to the order fulfillment of the retailer.
During the manufacturing phase of the process, the manufacturer produces to the schedule. Company can follow
their own distribution system and provide their retailer. Their manufacturer works as a distributor because there is
no distributor.

Availability of Logistics Support:

Different types of transports are available for logistics supports like mini truck and covered van logistics support for
shipping the product.

Distribution of the product:

After producing the product, the product will kept in the warehouse to launch for distribution from where the
circulation system will start on. There manufacturer works as a distributor. They distribute their product in Delhi,
NCR, Western U.P., M.P., Rajasthan, and Haryana.Apart form retail markets of Delhi, NCR, Western U.P., M.P.,
Rajasthan, Haryana, group has a strong presence in reputed institutions & corporate.

3.3.4 Receiving:

Receiving is the last process of manufacturing Cycle. In this stage manufacturer are finished the Perfect Bread,
warehouse, retailer or customer and inventory records are updated. Other processes related to storage and found
transfers also take place.

3.4 Procurement Cycle:

Procurement cycle occurs at the manufacturer/supplier interface and includes all processes necessary to ensure that
materials are available for manufacturing to occur according to schedule.

In this process, Perfect Bakery ensures that raw material is available for manufacturing of
Perfect Bread in the due date.

Conclusion: Every manufacturing organization has their own supply chain. And they also maintain it. The
Perfect Bakery also maintaining their own supply chain. They are trying to fulfill the demand for their Perfect Bread
of their customer. So while other supply chains think in terms of weeks and months a big baker has to think in terms
of hours and minutes. Research shows that empty shelves mean lower sales; so grocery category managers always
aim to have their shelves fully stocked at and during peak demand periods - an interesting problem for
merchandisers when you remember that bread demand is compressed into these two daily time slots!

So supplying enough bread to fill shelves is a critical tactic in the overall strategy.

Bread distribution is in fact a supply rather than a demand function given the requirement to ship fresh product daily
to a one day marketing life span and the closeness of production function to distribution activity.

The key to getting the baking strategy right is being able to match volume and variety to demand. Distribution plays
an integral role in the success of this objective; however there are still many other variables affecting demand, such
as weather, promotional activity in the market and so on.

Bread being consumed by wide cross - section of the society, the marketing of bread is based on a strong retail
distribution network which service the customers. As bread industry is a low margin business, cost control is crucial
in sustaining profitability in the long run.


Supply management in bakeries is integrated approach from customer buying to raw material
procurement .