What is a Supply Chain

what is a supply chain?

This section is generalised supply chain information. Supply chains may be different from company to company.

Supply chain is the process of getting your product, in good condition, reliably delivered from source to your customer on-time, in-full and at optimal cost.

COMPONENTS OF SUPPLY CHAIN

Forecasting & planning

Procurement

Manufacturing

Packaging

Warehousing

Transportation

Returns and recyclables

Information systems

Steps in supply chain

Step 1: Forecast demand

Step 2: Procurement

Step 3: Stock Raw Material

Step 4: Execute Production

Step 8: Manage Returns

Step 7: Collect Payment

Step 6: Delivery

Step 5: Manage Finished Goods Inventory

Information systems
Visibility and control by tracking all the above steps

logistics vs. supply chain

Supply chain incorporates all the functions related to moving product (and information) through your business. Logistics refers only to the physical storage, handing and transport of products, plus the associated information.

Importance of a functional supply chain

Supply chain simplified
Supply chain simplified

As demonstrated in the image above, due to a breakdown in supply chain for chocolate milk, the company will be making stock decisions with incorrect data. This will mean tied up capital, additional warehousing costs, lower revenue and disappointed customers

A good supply chain ensures that your products get to your customers with:

  • Consistent availability
  • Delivered on-time
  • Delivered in-full
  • At most optimal cost
  • With consistently quality
  • Sold at the right time
  • Sold in the right quantity

Minimizing these pain points:

  • Out-of-stock
  • Missed sales
  • Product returns
  • Lack of quality data

Clockwork operations

‘Clockwork’ is about achieving reliability and predictability. Clockwork operations allow you to achieve consistently high product fulfilment at a low cost with minimal disruption. This method reduces opportunities for error, builds accountability and trust while contributing to your brand equity with your trading partners and your consumers.

 

Integral components of clockwork operations are:

  • Clarity and simplicity of tasks
  • Adherence to schedules and cut-off times
  • Continuous tracking & data harvesting
  • Stakeholder accountabilities
 
Every stakeholder has a clear role to perform at the same time, everyday. This allows operations to be streamlined, achieving a 24 hour delivery to exceed client’s expectations.
5pm
Salesperson

Upload the day’s orders

6pm
Distributor

Completes retailer credit checks and updates orders to manufacturer

7pm
Finance

Complete distributor credit checks and approves orders

2am
Warehouse

Completes picking and dispatch to schedule

6am
Transport

Product available at distributor for transfer into delivery vans

5pm
Delivery

All retail deliveries complete

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