where would you find the customers' customer in a typical supply chain?

Supply chain management encompasses such a wide range of functions that it can seem daunting, fifty-fifty to the well-nigh experienced international businessperson. However, the process can be finer modelled past breaking it down into several main strategic areas.

One common and very effective model is the Supply Chain Operations Reference (SCOR) model, developed past the Supply Chain Council to enable managers to accost, meliorate and communicate supply chain management practices effectively.

The SCOR model runs through five supply chain stages: Plan, Source, Make, Evangelize, Render

Stage i: Plan

Planning involves a wide range of activities. Companies must get-go make up one's mind on their operations strategy. Whether to manufacture a product or component or buy it from a supplier is a major decision.

Companies must weigh the benefits and disadvantages of unlike options presented by international supply bondage.

Options include:

Manufacturing a product component domestically
Manufacturing a component in a foreign market by setting upwardly international product facilities
Buying a component from a strange supplier
Buying a component from a domestic supplier

If companies are manufacturing products, they must decide how they will be produced.

Goods can be:

Brand to stock (produced and stored, awaiting customer orders);
Make to gild (synthetic in response to a customer order);
Configure to order (partially manufactured the production and completed information technology after a business firm customer order is received); or
Engineer to order (manufactured a product to unique specifications provided by a customer).

Sometimes, goods tin can be produced by a combination of these methods. Companies must also decide whether they will outsource manufacturing. This operations planning is essential because these decisions influence the supply chain.

Planning also involves mapping out the network of manufacturing facilities and warehouses, determining the levels of product and specifying transportation flows betwixt sites. Information technology also involves assessing how to improve the global supply chain and its management processes.

When planning, companies should ensure that their supply chain direction strategies marshal to business strategies, that communication plans for the entire supply chain are decided and that methods of measuring operation and gathering data are established before planning begins.

Phase 2: Source

This aspect of supply chain management involves organizing the procurement of raw materials and components.

Procurement is the acquisition of goods and services at the best possible price, in the right quantity and at the right time.

When sources have been selected and vetted, companies must negotiate contracts and schedule deliveries.

Supplier performance must be assessed and payments to the suppliers made when appropriate. In some cases, companies will be working with a network of suppliers. This will involve working with this network, managing inventory and company assets and ensuring that export and import requirements are met.

Stage 3: Make

This phase is concerned with scheduling of product activities, testing of products, packing and release. Companies must also manage rules for performance, data that must be stored, facilities and regulatory compliance.

Stage 4: Deliver

The commitment stage encompasses all the steps from processing customer inquiries to selecting distribution strategies and transportation options. Companies must also manage warehousing and inventory or pay for a service provider to manage these tasks for them.

The delivery stage includes whatsoever trial period or warranty catamenia, customers or retail sites must be invoiced and payments received, and companies must manage import and export requirements for the finished production.

Stage 5: Return

Return is associated with managing all returns of defective products, including identifying the product condition, authorizing returns, scheduling product shipments, replacing lacking products and providing refunds.

Returns also include "terminate-of-life" products (those that are in the cease of their production lifetime and a vendor will no longer exist marketing, selling, or promoting a particular product and may also exist limiting or ending support for the production).

Companies must establish rules for the following:

Production returns
Monitoring performance and costs
Managing inventory of returned production

Do you remember we covered all of the essential stages of supply chain development? If not, what would yous add to the mix?

This content is an excerpt from the FITTskills Global Supply Chain Management textbook. Enhance your knowledge and brownie with the leading international merchandise grooming and certification experts.

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Source: https://www.tradeready.ca/2016/fittskills-refresher/5-essential-stages-developing-a-successful-supply-chain/

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