Supply Chain Process

By
Raveendra Rao.K.
SOM, Manipal

KRR SDM August 2016

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 initiated by a customer order where as
push processes are initiated in anticipation of customer
order
KRR SDM August 2016
Cycle view of Supply Chain Process
Customer

Customer order cycle

Retailer

Replenishment Cycle
Distributor

Manufacturing Cycle
Manufacturer

Procurement cycle
Supplier

KRR SDM August 2016

KRR SDM August 2016
 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 SDM August 2016
 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 SDM August 2016

 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
good’s 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 SDM August 2016
 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 SDM August 2016