THE SUPPLY CHAIN MODELS

A supply chain is a broad chain of activities required to plan, control and execute a products flow starting from gathering raw materials, production, and distribution of finished goods to the end-user in the most economical way possible.

TYPES OF SUPPLY CHAIN MODELS

Different types of supply chains exist and are readily available for businesses that intend to improve their workflow and efficiency. The type of supply chain a business uses usually rely on the needs and structure of the business

The following includes some examples:

+ Continuous Flow Model: This is an old supply chain model for businesses that have their products in high demand. These products are expected to require little to no changes in the design. This lack of variation means that managers can effectively control production times and inventory. In a continuous flow model, there is a constant need for the supply of raw materials, this is to prevent hitches that would affect production.

+ Fast Chain Model: This model is ideal for businesses that sell their products based on what is in vogue. Such products do not usually last in the market as they tend to have a limited time frame.

Using the fast chain model requires that your products reach the consumer quickly, this is to ensure leverage on the prevailing trend. When using this model, speed is required in all processes starting from idea incubation down to the delivery of goods to the consumer. A typical example of an industry that employs this model is the Fast fashion industry.

+ Flexible Model: This is a model for businesses that produce seasonal products. These companies experience surges of high demand for their products followed by long periods of little to no demand. The flexible model allows such companies to quickly begin production as soon as demand increases and also sell off efficiently before demand tapers off. For the efficiency of this model, there has to be accuracy in the forecasting of the availability of raw materials and labor costs.

SUPPLY CHAIN PROCESSES

+ Inventory and manufacture planning. This process that supply and demand are managed effectively

+ Sourcing of raw materials for product manufacturing.

+ Product manufacturing and test running

+ Product packaging and storage

+ Movement of finished products to the end-users.

+ Improving customer service for returned goods

Supply chain management(SCM) is a very important part of the production process. It controls all the activities required for a company to convert raw materials into finished products that are then sold to end-users.

Hence it is important for business owners to adopt supply chain models that suit them, this would enable them to manage demand effectively while enhancing the quality of products produced.

 

 

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