Stages of supply chain management evolution (2024)

FAQs

What are the stages of supply chain management evolution? ›

Stages of this evolution include ad hoc, organized, integrated, and extended. At this stage, supply chain practices and processes are unstructured and ill-defined with few, if any, metrics in place for performance measurement.

Supply chain management has five key elements—planning, sourcing raw materials, manufacturing, delivery, and returns.

Stage 1: Plan

It is one of the most critical phases since it includes a wide variety of activities. Every company needs a plan or a road-map and businesses must first decide on their operations strategy and put them into action. A big decision is whether to make a product or part or purchase it from a supplier.

The main driving force behind the development of SCM over the past 20 years has been the desire to minimize inventory level. In the 1980s companies discovered new manufacturing techniques that allowed them to reduce costs and better compete in different markets.

Four evaluation criteria are proposed: support for the firm's strategic objectives, consistency among internal elements, coverage of areas of interest, and sufficiency in fulfilling expectations. A method is proposed to apply these criteria in the evaluation of a supply chain strategy.

Supply Chain Management (Operations) Level 5 – SAQA ID 74149

Demonstrate an understanding of the influence of performance and risk within a supply chain management environment. Contribute to the development of a supply chain strategy and operational plans for the organisation.

The five stages of a typical supply chain are supplier, manufacturer, distributor, retailer, and customer, as shown in Figure 1. A manufacturer, for example, may receive materials from several suppliers and, at the same time, supply several distributors, hence the concept of a network is used. ...

Deploying a Customer-focused Supply Chain Strategy with 4Rs (Responsiveness, Resiliency, Reliability and Realignment) Model.

The functions of a supply chain include product development, marketing, operations, distribution, finance, and customer service.

What are the 4 main members in every supply chain? ›

In every supply chain there are: 1) producers; 2) distributors or wholesalers; 3) retailers; and 4) customers or consumers. Supplying customer demand for products and services is the reason for supply chains to exist. In its simplest form, a supply chain is composed of a company and its suppliers and customers.

Reduce Operating Costs

Decreases Purchasing Cost – Retailers depend on supply chains to quickly deliver expensive products to avoid holding costly inventories in stores any longer than necessary.

Since Supply Chain Management consists of managing the flow of information, products and services across a network of supply chain partners, manufacturing plants, and customers, the most challenging key factor would be an accurate communication.

The ultimate goal of effective supply chain management is higher profits through improved customer satisfaction and a lower cost of doing business. Profits are healthier when costs are controlled and reduced wherever possible. Operating costs go down when raw materials and production costs go down.

A clear example of a supply chain that has evolved over the years is the Walmart case. In its transition from regional retailer to a global market, Walmart has become synonymous of success in terms of supply chain management.

The main types of evaluation are process, impact, outcome and summative evaluation.

CIO, the business magazine from Boston's International Data group, have identified six core components of good SCM: Planning, Sourcing, Making, Delivering, Returning, and Enabling.

Do all supply chains have 4 levels? ›

The four modern supply chain levels that businesses and companies need and put in use today to run their operations are retailer, wholesaler, manufacturer, and service provider. Since every level of supply chain has it own long list of unique job descriptions.

Plan. The initial stage of the supply chain process is the planning stage. We need to develop a plan or strategy in order to address how the products and services will satisfy the demands and necessities of the customers. In this stage, the planning should mainly focus on designing a strategy that yields maximum profit ...

There are four types of supply chain models depending on the nature of the business and business goals. This model tracks customer demand in real time, so that finished good inventory can be processed and restocked efficiently.

Good waste management follows the 4 Rs: Reduce, Reuse, Recycle and Recover, as well as avoiding illegal dumping and littering. Did you know that the 4 Rs can help us to find better ways to manage our litter? You can REUSE by finding ways to use things again that you would normally throw away.

The four R's are used for Reduce, Reuse, Recycle and Recover. REDUCE: This means to use the environmental resources in a sustainable way and prevent the wastage. For example, using a bucket full of water instead of a shower while bathing. REUSE: This means we can use the same thing many times.

Reduce, Reuse, Recycle, Repurpose: Your Guide to the Four R's of Green Living. By: Matt Kundo. August 9, 2022. The new decade is upon us, and many of us have the same goal in mind: to be more eco-friendly.

While supply chain is a very broad career field, it has 7 primary functional areas: Purchasing, Manufacturing, Inventory Management, Demand Planning, Warehousing, Transportation, and Customer Service.

Supply chain management is the process of delivering a product from raw material to the consumer. It includes supply planning, product planning, demand planning, sales and operations planning, and supply management.

What are the main supply chains? ›

The three main flows of the supply chain are the product flow, the information flow and the finances flow. These occur across three main stages: strategy, planning and operation. SCM involves coordinating and integrating these flows both within and among companies. A diagram of the main stages of the supply chain.

The characteristics of a good supply chain are visibility, optimization, having the lowest cost possible, timeliness, and consistency.

Economic markets and specifically inflation, geopolitical and trade risks, and the changing global health situation will all impact supply chains.

When items in the supply chain travel in reverse order, your organization has to figure out a way to handle those products. The five Rs of reverse logistics are returns, reselling, repairs, replacements, and recycling. The processes and solutions you apply to each of these can help your business improve its results.

Supply Chain Management (SCM) involves the following three levels: Strategic Level. Tactical Level. Operational Level.

In this step, we look at the 7 Rs of logistics. So, what are the 7 Rs? The Chartered Institute of Logistics & Transport UK (2019) defines them as: Getting the Right product, in the Right quantity, in the Right condition, at the Right place, at the Right time, to the Right customer, at the Right price.

The 5 R's: Refuse, Reduce, Reuse, Repurpose, Recycle.

To conclude, organizations looking out for a strategic supply chain partner, don't give prime importance to Product, Price, Place and Promotion.

If you have fully embraced "Reduce, Reuse, and Recycle," there are two more “Rs" to learn.

What is a two stage supply chain? ›

Abstract. We consider the case of a two-stage serial supply chain system. This supply chain system involves a single vendor who supplies a single buyer with a single product. The vendor's production rate is assumed finite. In addition, the demand at the buyer is assumed deterministic.