A Supply chain goes through a process. It is the process views of a supply chain. The supply chain process is a combination of two processes views.
- Cycle view:
The supply chain process has a series of cycle view. It has performed at the interface between two successive stages of the supply chain. - Push /Pull view:
The supply chain process has two categories. It is depending on the response to customer orders or forecasting customer orders. Pull process is known as a customer order. Whereas the push process is the anticipating of the customer order.
Cycle view of supply chain processes
The cycle view of the supply chain has five stages. Let’s see-
- Customer
- Retailer
- Distributor
- Manufacturer
- Supplier
These five stages have another four cycles. Each cycle happens at the interface of two successive stages of the supply chain. These four cycles are not the same in all supply chain. They all have different entities. For example, a grocery store. The grocery seller collects goods from its retailer. The wholesaler collects goods from distributors. And the distributor collects goods from producers. So, the grocery seller manages his supply chain by keeping finished goods. The seller maintains a good relationship with the wholesaler. So, before finishing foods, the grocery seller informs the wholesaler. Then he collects his goods from a wholesaler. See the four cycles of cycle view.
- Customer order cycle
- Replenishment cycle
- Manufacturing cycle
- Procurement cycle
Each cycle consists of six sub-processes. Have a look-
- Supplier stage markets products
- Buyer stage places order
- Supplier stage receives an order
- Supplier stage suppliers order
- Buyer stage receives stage receives the supply
- Buyer returns reverse flows to suppliers or third party.
Push /Pull view of supply chain processes
The supply chain process has two categories. It is depending on the response to customer orders or forecasting customer orders. Pull process is a customer order. Besides, the push process is the anticipating of the customer order.
Pull process is also a reactive process. However, they may respond or react to customer demand. On the other hand, the push process may also refer as speculative processes. Moreover, they respond to anticipate actual demand.
There is a boundary between pull and push a view. This boundary differentiated pull process from the push process. Push process is operated in an uncertain environment. Here, customer demand is unknown to all. Besides, the pull process is operated in a certain environment. Here, customer demand is known to all.
These two processes are often faced a constrained. That is capacity and inventory decisions.
Supply chain macro processes in a firm
This is another process of view of the supply chain. But this is not included in the main two views of the supply chain. It has three classifications. Let’s see-
- Customer relationship management (CRM): This is the combinations of all processes at the interface between the firm and its customers.
- Market
- Price
- Sell
- Call center
- Order management
- Internal supply chain management(ISCM): This is the combinations of all processes that are internal to the firm.
- Strategic planning
- Demand planning
- Supply planning
- Fulfillment
- Field service
- Supplier relationship management(SRM)
This is the combinations of all processes at the interface between the firm and its suppliers.
- Source
- Negotiate
- Buy
- Design collaboration
- Supply collaboration
These three macro processes manage the flow of information, product, and funds. This flows generate, receive and fulfill a customer request.
