supply chain management kya hota h send diagram
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Answer:
A supply chain is a network of retailers, distributors, transporters, storage facilities, and suppliers who take part in the production, delivery, and sale of a product that convert and move the goods from raw materials to end users, it describes the processes and organisations involved in converting and conveying the goods from manufactures to consumers.
The activities close to the raw material stage are known as upstream activities and activities between the manufacturer and end consumer are downstream activities. Marketing distribution concerns these downstream activities. A typical supply chain consists of multiple companies which coordinate activities to set themselves apart from the competition.
A supply chain basically has three key parts:
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i. Supply:
It focuses on the raw materials supplied to manufacturing, including how, when, and from what location.
ii. Manufacturing:
It focuses on converting these raw materials into finished products.
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iii. Distribution:
It focuses on ensuring that these products reach the consumers through an organized network of distributors, warehouses, and retailers.
A Typical Supply Chain
Though often applied to manufacturing and consumer products, a supply chain can also be used to show how various processes supply to one another (figure 16.2). The supply chain definition in this sense can apply to Internet technology, finance, and many other industries.
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A supply chain strategy defines how the supply chain should operate in order to compete in the market. The strategy evaluates the benefits and costs relating to the operation. While a business strategy focuses on the overall direction a company wishes to pursue, supply chain strategy focuses on the actual operations of the organization and the supply chain that will be used to meet a specific goal.
A Network of Supply Chains
Example of Supply Chain:
Consider a customer walks into Spencer Store to purchase beauty soap. The supply chain begins with the customer and his need for beauty soap. The next stage of this supply chain is the Spencer retail store where the customer visits. Spencer stocks its shelves using inventory that may have been supplied from a finished goods warehouse managed by Wal-Mart or received from third party (vendor). The vendor in turn is stocked by the manufacturer [say Hindustan Uni Liver (HUL)].
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The HUL manufacturing plant receives raw material from a variety of suppliers who may themselves have been supplied by lower tier suppliers. For example, packaging material may come from Home- foil (an aluminum foil company) while Home-foil receives raw material to manufacture the packaging material from other suppliers. This forms a typical supply chain.
Stages of a Beauty Soap Supply Chain
In another example, a customer purchases a wrist watch and traveling bag online from Reliance retail. The supply chain includes, among others, the customer Reliance Website that accepts the customer’s order, the Reliance store, and all of Reliance’s suppliers and their suppliers.
The Reliance Website provides the customer with information regarding pricing, product features, and product availability. After selecting the product, the customer clicks on ‘order form’ and pays for the product. The customer may later return to the Website to check the status of the order.
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Thus a typical supply chain may involve a variety of stages discussed as under:
(i) Customers.
(ii) Retailers.
(iii) Wholesalers/Distributors.
(iv) Manufacturers.
(v) Component/Raw material supplier.
Benefits of Supply Chains:
(1) It bridges the gaps between the suppliers and the customers.
(2) It helps manufacturers in reducing inventories as finished goods are stored nearer to the customers.
(3) It allows firms to conduct operations at an appropriate time and place for the benefits of suppliers and customers.
(4) Effective supply chains results in enhanced customer service as retailers get a choice of goods and also carry less stock.
(5) Supply chains make movements simple, cost-effective and efficient as transport is simpler.
(6) Expertise can be developed in a particular type of operation.
(7) It allows firms to conduct operations at an appropriate time and place for the benefits of suppliers and customers