Youtube Video

Summary published at 10/28/2024

🎵 What is a Supply Chain? A supply chain is a global network that delivers products and services from raw materials to end customers through an engineered flow of information, physical distribution, and cash.

📦 Basic Supply Chain Components:

  • Supplier: Provides goods and services.
  • Producer: Receives components to create finished goods.
  • Customer: Receives the finished product.

🔄 Four Basic Flows:

  • Flow of physical materials from suppliers to customers.
  • Flow of cash from customers to suppliers.
  • Flow of information along the chain.
  • Reverse flow of products returned.

📊 Supply Chain Strategies:

  • Stable: Focused on execution efficiencies and cost performance.
  • Reactive: Responds to demand changes.
  • Efficient: Focuses on total delivered cost management.

🍰 Supply Chain Example: A bakery uses a wholesale food distributor for ingredients, producing cakes for customers.

🏭 Manufacturing Supply Chain: Involves multiple tiers of suppliers and distribution centers, with primary product flows from left to right and cash flows from right to left.

Service Supply Chains: Include industries like electricity providers and legal advisors, focusing on delivering services rather than products.

🔗 Types of Supply Chain Management:

  • Vertical Integration: Company owns its supply chain.
  • Horizontal Integration: Expanding by acquiring similar companies.

📈 Benefits:

  • Vertical Integration: Control and synchronization of operations.
  • Horizontal Integration: Economies of scale and market expertise.

🛠️ Stages of Supply Chain Management Evolution:

  • Stage 0: Stable.
  • Stage 1: Multiple dysfunction.
  • Stage 2: Semi-functional enterprise.
  • Stage 3: Integrated enterprise.
  • Stage 4: Extended enterprise.

📦 What is Supply Chain Management? It is the management of the flow of goods and services, including the movement and storage of raw materials, work in process inventory, and finished goods from origin to consumption.

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