A discussion about the Cycle View of a Supply Chain

Cycle View of a Supply Chain

Introduction:

The processes in a Supply Chain are usually divided into a series of cycles, each performed in the interface between two interrelated successive stages of a Supply Chain. On the other hand, Sub-processes in each Supply Chain Process Cycle i.e., each cycle consists of six sub-processes, supplier stage markets product, buyer stage places order, supplier stage receives order, supplier stage supplies order, buyer stage receives supply, buyer returns reverse flows to supplier or third party.

Supply Chain Stages

 

Different stages and parties:

 Supply Chain consists of all parties. Who are involved directly or indirectly, while fulfill customer request. Not only manufacturers and suppliers, but also transporters, retailers, warehouses and customers themselves are included in the supply chain. A typical Supply Chain includes a variety of stages including customers, retailers, distributors, manufacturers, component suppliers. Each stage of a supply chain is connected through the flow of product, information and funds. Depending on the transaction the sub-processes can be applied to the appropriate cycle, for example, customer buying online from Amazon: customer order cycle and Amazon ordering books from distributor, also replenishment cycle.

The processes:

Cycle View of Supply Chain is useful to make operational decisions as role of each member of Supply Chain is defined. Usually Member of Supply Chain Processes are as follows: Customer, Retailer, Distributor, Manufacturer & Supplier. In supply chain management (SCM), the management of the flow of goods and services, involves the movement and storage of raw materials, of work-in-process inventory, and of finished goods from point of inception to point of consumption.

Customer:

Customer arrives at location of choice to make a buying decision. The Supply Chain’s goal is to convert customer arrival into customer order. Clients who habitually return to a seller develop customs that allow for regular, sustained commerce that allows the seller to develop statistical models to optimize production processes  and supply chains that changes the location or formalizes the changes of ownership or entitlement transactions.

Retailer:

Retailer is informed what products they are buying. The goal is to ensure order entry quickly and well communicated among all other processes. In supply chain management (SCM), the management of the flow of goods and services , involves the social movement and storage of raw materials, of work-in-process inventory, and of finished goods from point of inception to point of consumption .

 

Distributor:

There are some distribution channels which enhance the Supply Chain network as a whole to reach the product to the customer. In a supply chain, distribution is fundamentally concerned with ensuring that products reach target customers in the most direct and cost efficient manner. In the case of services, distribution is principally concerned with access. Although distribution, as a concept, is relatively simple, in practice distribution management may involve a diverse range of activities and disciplines including: detailed logistics, transportation, warehousing, storage, inventory management.

 

Manufacturer:

Manufacturing facilities make the product according to order placed by customer. In order to do this they need to do necessary interaction with other members of the Supply Chain Cycle. It is mention-able that manufacturing processes are the steps through which raw materials are transformed into a final product. The manufacturing process begins with the creation of the materials from which the design is made. These materials are then modified through manufacturing processes to become the required part.

 

Supplier:

 A Supplier in a Supply Chain is an enterprise that contributes goods or services in a Supply Chain Cycle. Usually they manufacture a stock item, which is supplied to the next link of the Supply Chain, which contributes to enhance value of the supply Chain. A supplier supplies goods and services to another organization. This entity is part of the supply chain of a business, which may provide the bulk of the value contained within its products. A supplier is usually a manufacturer or a distributor.

Conclusion:

A cycle view of supply chain is very useful when considering operational decisions. Because, the roles of each member of the supply chain is clearly outlined in cycle view of supply chain. To understand a particular supply chain it is very much necessary. Another view of understanding supply chain is push-pull view.

 

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Bengali Version: If you like to read the Bengali Version of this article, please visit below mentioned link:
http://www.slideshare.net/ikramhridinuha/cycle-view-of-a-supply-chain-bengali

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