Supply Chain Process

By Raveendra Rao.K. MIM, Manipal

KRR Logistics Dec 2012

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

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

Customer Order Cycle Customer initiates the process. Process includes Customer arrival walk in, telephone, 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, less counters, less telephone lines, error free websites
KRR Logistics Dec 2012

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

KRR Logistics Dec 2012

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

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. Initiated by component inventory, RM inventory, retailer demand, forecasts. Its necessary for suppliers to be linked to manufacturing schedule, and if lead time is too long , supplier has to work on forecasts.

KRR Logistics Dec 2012