The Defination of Supply Chain & Stock Management

Topics: Supply chain management, Supply chain, Management Pages: 6 (1839 words) Published: January 18, 2011
Generally, the supply chain is a marketing channel of distribution beginning with the supplier of materials, extending through the manufacturing process to the distributor, retailer and ultimately to the consumers. Every process of the supply chain is just like a network; they work together to control, manage, improve, and design the flow of materials from suppliers to the end users. It is important that every single supply chain player to coordinate and collaborate to meet each of their specific goals. It is normally about how to fulfil customers demand through the most efficient use of resources. However, every single organisation has their own supply chain in order to succeed in their business. It also means that different organisation has different and complex supply chain. For instance, Sainsbury, IKEA and Asahi breweries have their very own supply chain because they are offering different products lines for their consumers. Apart from that, it is also extremely important that organisation manages its supply chain efficiently by getting the right product at the right time, right place and at the right price. The supply chain system involves peoples, technology, resources and information. A supply chain manager with lots of expert knowledge and always interacts with people who are specialist on technology, Regional law, and International law, currencies, cultures, and infrastructure and resource availability. Therefore, the knowledgeable and sociable supply chain manger will be able to guide an organisation in purchasing, operations and logistics to a successful business pathway. In addition, a smart supply chain manager usually saves costs at every single stage from primary to tertiary stages meanwhile the value has been added on the product such as label and design in order to offer the finished product in an attractive way – price, packaging and brand name. It is important that a supply chain manager has lots of business and supply chain knowledge in order to succeed. It is responsible of supply chain manger to make a decision on:

Supply chain manager also need to make sure the organisation are using minimum effort and cost in order to achieve sustainable goals. * Deal with potential suppliers – contract-skills and knowledge is needed in order to negotiate the purchase of raw materials * Minimise the cost at every available opportunity in order to add value on the products such as using the lowest material cost * Location of factories and warehouses to serve customers’ market * Using location and allocation

* Transportation, distribution - vehicle routing analysis * Dynamic programming
* Traditional logistics optimisation to maximise the efficiency of the distribution size

Supply Chain

Supply Chain of IKEA (Shoes cabinets)

IKEA’s Shoes Cabinets

Sainsbury’s Potatoes
Supply Chain of Sainsbury (potatoes)

Supply Chain of Asahi Breweries (Super Dry Beer)Customers

Collect information from customers in order to meet the needs of customers. This information can use by product development department in order to develop or upgrade their existing products.

Logistics and Distribution
Manufacturing/ Production
Sales, promotion and
Procurement of raw materials

Make sure meets national and international law
Shipment decision by cooperating with business partner to export the beers all around the world

A factory network system to control the process of production of beer Designing the bottles with attractive labels, recycling mark, nutritional contents to add value on ‘Super Dry Beer’

Consumer satisfaction, quality assurance
Product knowledge training sales staff
Advertisement and support materials, printed materials, websites and face book Deal with the product complaints and accident – customers

Collects all the raw material for ‘Super Dry Beer’ from suppliers e.g. beer bottles, crown, designing of labels and the...
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