Key Operations in Supply Chain PDF

Describe the Key Operations in Supply Chain 1. Key Operations in Supply Chain Supply chain operations are the systems, activities, and processes that work together to move goods from the supplier to the retailer to the end customer. These operations must be carried out daily, and require coor...

Describe the Key Operations in Supply Chain 1. Key Operations in Supply Chain Supply chain operations are the systems, activities, and processes that work together to move goods from the supplier to the retailer to the end customer. These operations must be carried out daily, and require coordination between multiple parties, including suppliers, manufacturers, warehousing services, ecommerce businesses, and last-mile delivery services. 1.1 Demand Management Demand management involves analysing market trends, historical data, and customer demand patterns to forecast future demand. It aims to balance supply and demand effectively, ensuring that the right quantity of goods or services is produced or available at the right time to meet customer needs while minimising excess inventory or shortages. This helps in making informed decisions about production and inventory levels. 1.2 Procuring Inventory Procuring inventory involves the process of acquiring goods or materials needed for production, distribution, or sale of products within a business. This operation focuses on negotiating contracts, selecting suppliers, and managing relationships to ensure a reliable supply of quality products. Efficient procurement of inventory is vital for optimising supply chain operations, reducing costs, minimising stockouts, and meeting customer demands effectively. Integration of technology, data analytics, and continuous process improvement helps in streamlining procurement processes for better efficiency and effectiveness. 1.3 Receiving & Processing Inventory Receiving and processing inventory refers to the procedures involved in accepting, verifying, and managing incoming goods or materials within a business. This process is critical for ensuring that the received inventory matches the order placed with suppliers and meets quality standards before it is incorporated into the inventory system for further distribution or use. 1.4 Distributing Inventory Distributing inventory involves the movement of goods or materials from the point of production or storage to the final destination, which could be a retailer, wholesaler, or directly to the end consumer. This process ensures timely and efficient delivery of products to meet customer demands while optimising the flow of goods through the supply chain network. 1.5 Tracking Inventory Each shipment is assigned a unique tracking ID by the shipping carrier, allowing customers to track the status of their orders and providing transparency throughout the shipping process. By using tracking IDs, retailers can efficiently manage and monitor the movement of inventory and shipments, enabling them to proactively identify and address any delays, disruptions, or issues that may arise during transit. This helps ensure timely delivery of goods and enhances customer satisfaction. 1.6 Returns Management Returns management, often referred to as reverse logistics, is the process handling product returns from customers or the reverse flow of goods from the point of consumption or delivery back to the manufacturer or distributor. This process involves efficiently managing returned products, reintegration into inventory, refurbishment, disposal, and identifying opportunities for cost recovery. Identify the 5 Main Activities in a Supply Chain Operation Reference (SCOR) model 1. Supply Chain Operation Reference (SCOR) Model The Supply Chain Operations Reference Model (SCOR) is a framework used in supply chain management. It provides a structured approach for companies to analyse, design, and improve their supply chain processes. The model encompasses a comprehensive set of metrics, best practices, and process descriptions that enable organisations to achieve operational excellence and enhance their overall supply chain performance. The SCOR Model was developed by the Supply Chain Council (now part of APICS) in the mid-1990s and has since become a benchmark for organisations seeking to optimise their supply chain processes. The most recent version, SCOR 12.0, introduced in 2020, reflects the evolving nature of supply chain management and incorporates advancements in areas such as data analytics, artificial intelligence, and blockchain technology. It emphasises the need for agility, resilience, and responsiveness in today's complex and interconnected supply chains. The supply chain operations reference (SCOR) model helps businesses evaluate and perfect supply chain management for reliability, consistency, and efficiency. Supply chain operations are the systems, activities, and processes that work together to move goods from the supplier to the retailer to the end customer. Figure 15 The SCOR Model Source: AIMS 2. Main Activities in SCOR Model 2.1 Planning Planning activities include determining resources, requirements, and the chain of communication for a process to ensure it aligns with business goals. This includes developing best practices for supply chain efficiency while considering compliance, transportation, assets, inventory, and other required elements of supply chain management. 2.2 Sourcing Sourcing activities involve obtaining goods and services to meet planned or actual market demand. This includes purchasing, receipt, assay, and the supply of incoming material and supplier agreements. 2.3 Making This includes activities that take finished products and make them market- ready to meet planned or actual demand. It defines when orders need to be made to order, made to stock, or engineered to order and includes production management and bill of materials, as well as all necessary equipment and facilities. 2.4 Delivering Delivery activities involved delivering finished products and services to meet either planned or actual demand fall under this heading, including order, transportation, and distribution management. 2.5 Returning Activities involved with returning or receiving returned products, either from customers or suppliers. This includes post-delivery customer support processes.