4. Supply Chain Networks

[MUSIC] Welcome back to lesson three, Supply Chain Networks. Upon completion of this lesson, learner should be able to describe a supply chain network, draw a supply chain network of a simple finished product, you will be able to practice drawing supply chain network in assignment one of this course and discuss alternative network flow paths. You will be discussing your understanding of this lesson with other learners in the discussion forum after this video. Let’s take a quick look at another graphical representation of the supply chain. From the point of view of a given organisation moving to the left, or the supply side, is often referred to as moving upstream in the supply chain.
Likewise, from a given organization’s point of view, moving to the right, toward the end consumer is often viewed as being moving to the demand side or moving downstream in the supply chain. And again each industry and/or product may have a number of different tiers, both on the supply side and the demand side of its network.
Lat’s take another look at supply chain networks moving again from raw material suppliers, through to end customers, crossing through a number of tiers both on the supply and the demand side of the supply chain.
As we look at this relatively simple diagram, let’s take a look at the various alternative paths that may be followed in moving from material to finished goods. And in particular, different finished goods distribution channels. A supplier may have facilities that are focused on producing a single good such as a coal mining operation harvesting coal or a supplier may produce a wide assortment from a single plant such as a parts manufacturer producing hundreds of similar parts using the same plant equipment.
Hence, there may be relatively few flows between suppliers and finished product manufacturers in a given supply chain or there maybe a wide variety of flows going between supplier locations and manufacturer locations. Likewise, a manufacturer sourcing strategy can have a big impact on the nature of flows between suppliers and manufacturers. For example, a manufacturer may choose to concentrate their sourcing spend on a single supplier or single supplier’s plant in order to leverage their spend or the manufacturer may have a need or desire to source the same components or parts or materials from a wide variety of plants and suppliers.
As we move from finished product production through delivery to the end consumer, there are a number of paths that the product may flow. Generally, these flows are determined by the nature and history of the specific industry.
However in recent years, with the advent and strong growth of e-commerce, and alternative distribution models, there are now multiple paths that a finished product can take to get to an end consumer.
Historically, manufacturers have had a core competency in manufacturing efficiency. However, they may not have been effective in product distribution with consumers and in managing customer relationships within consumers which entails customer account management that maybe entail the dealing with the order of tens of thousands of customers who are consumers, each with individual contracts and terms and shipping locations. With the advent of online ordering, sophisticated shipping systems, track and trace functionality, and the use of third party logistics providers, manufacturers now have the opportunity to have a more direct relationship with end-consumers. Now utilizing e-commerce tools and channels, manufacturers have the opportunity to bypass retailers. Basically serving as a retailer themselves and bypassing whole seller and distributer channels. In some cases bypassing these channels may lead to an overall reduction in supply chain costs. However in many cases, the nature of whole sellers and distributors are such that they can provide added value in the supply chain which reduces overall supply chain costs.
Let’s take another look at an industry specific supply chain. That of a quick service restaurant, such as a subway-type restaurant.
Quick service restaurants are supplied by food service distributors. The role of the food service distributor is to purchase multiple components for the restaurants. This may be paper goods, produce, proteins, etcetera. The food service provider combines these multiple components into single, efficient shipments to the stores that meet all of their needs. Without the distributor, the stores would have numerous shipments from individual manufacturers hitting the stores throughout the day, making stores ineffective, and making transportation between the individual manufacturers and the stores inefficient. So, the distributors play an important role in consolidating multiple items efficiently. This diagram depicts a supply chain for a quick serve restaurant showing flows from farm through individual restaurants with the nature of the supply chain partners varying in terms of number of flows and the role. Note that each restaurant is assigned to a single food service distributor for efficiency purposes.
And we have a question. When you consider that Subway has 35,000 restaurants, if you are a manufacturer of protein for subway, would you prefer to handle distribution to 35,000 individual stores multiple times per week or as a manufacturer who focuses on plant efficiency, would you prefer to ship in truckload quantities to a handful of distributors who in turn handle distribution to those restaurants?
Once again, let’s take a look at another graphical representation of a supply chain. Here we see a laptop supply chain, fairly simplified diagram of a laptop supply chain. However, you can visualize that there are multiple components on the left or supply side that are coming together through the various tiers to create the laptop computer. For example moving from raw materials such as crude oil, through plastic creation to keyboard component creation as an input to the laptop at the finished manufacturer location where it is combined with various other components of the supply chain such as the power supply, display, the case, the memory, the processor, etc.
The demand side, there are a number of different paths that the computer can flow throw to get to the end consumer. For example, a computer whole seller purchases laptops from the manufacturer, the wholesaler may then sell computers, and deliver them to a retailer’s distribution center. And the retailer may then distribute the computer to the end consumer via direct delivery or alternatively, the computer wholesaler may deliver computers to a computer store where they are purchased by a walk-up customer. In summary, in this lesson, we have described the supply chain network, practiced drawing a supply chain network of simple finished product, and discussed alternative network flow paths. [MUSIC]

Jim Rohn Sứ mệnh khởi nghiệp