Professional Documents
Culture Documents
C1
S1
C4
S4
Raw Material
Semi-Finish
Manufacturing
Assembly
C2
S2
C5
S5
Suppliers
Procurement
C3
Customers
Sales And
Distribution
Supply chain is the net work of suppliers providing Raw material or spare parts
to the facilities / assembly lines. In the facilities raw material are converted
into semi-finish goods, in some cases into finally finish goods. Semi-finished
Are converted into Finished Goods. These Finish Goods are finally distributed
To customers and end consumers through channel partners.
In the facilities the raw material and semi-finished goods passes through
many phases and channels.
Product Flow,
Information Flow,
Finance Flow.
Information Flow
Finance Flow
Procurement
Manufacturing
Market/Sales
Material Flow
Information Flow
Market gives information about the product, prices, competition, type
of products, variety, etc., Based on the market requirement company plan
Either to produce or procure. If decision is to procure directly the final
Product, then the company buy the product and distributes into the
Market, paying the suppliers. In case the company plan to produce the
final product, then the company install the machines and facilities.
Raw Material is procured and transformed. Finance flow from Market to
Supplier.
Material and Information flows from Supplier to Manufacturing and
Assembly units, from transformation to customer.
2
Some of the other important definitions are as under "design, planning, execution, control, and monitoring of supply chain
activities with the objective of creating net value, building a competitive
infrastructure, leveraging worldwide logistics, synchronizing supply with
demand and measuring performance globally.
Supply chain management is the systemic, strategic coordination of the
traditional business functions and the tactics across these business
functions within a particular company and across businesses within the
supply chain, for the purposes of improving the long-term performance of
the individual companies and the supply chain as a whole (Mentzer et al.,
2001).[2]
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