Process View of Supply Chain Management
A supply chain is a process and a flow that works in order between and within the different phases of supply chain so that a company ca fulfill the demands of a customer. There are various processes and flows within and between stages of a product supply chain, all designed to meet a customer’s need for a product.
- Cycle View
- Push and Pull View
The cycle view of supply chain defines clearly which processes are involved and who owns which processes. When making operational decisions, this view is very useful because it specifies the roles and responsibilities of each member of the supply chain as well as the intended outcomes for each process.
There are a series of processes involved in the supply chain, each of which occurs at the interface between two successive supply chain stages. A supply chain consists of a series of cycles that overlap between successive stages.
Cycle View of Supply Chain Management
Each cycle involves the customer stage placing an order and receiving it from the supplier stage once it has been supplied by it. In each cycle, two successive stages occur at the same time
- Cycle of Customer Orders
- Replenishment Cycle
- Manufacturing Cycle
- Procurement Cycle
Cycle view clearly defines processes involved and the owners of each process. This cycle view specifies the roles and responsibilities of each member and the desired outcome of each process.
Cycle of Customer Orders
Customer arrival means the arrival of a customer to the market to make a purchase of his or her choice. Success of the business is stated when the business starts getting interaction from the customers. Customer arrival is one main factor for the marketplace. The customers will be doing the purchases or places the orders.
In the replenishment cycle stage, mostly, there are many retailers exactly reacted as a customer; the stage is customer order entry according to main features. Distributor and retailer both are involved in replenishment cycle in integrated form.
In this process, the main parties that are involved are distributors with the manufacturer and/or retailers with
manufacturers. In addition, includes replenishing distributor’s inventory.
The interface of manufacturer/supplier is necessary for the stage to occur. It included all processes in which it is being insured the mobilization of materials from the availability of manufacturing until the scheduling perspective.
A push/pull view of the supply chain categories processes based on whether they are initiated in response to a customer order (pull) or in anticipation of a customer order (push). This view is very useful when considering strategic decisions relating to supply chain design.
The processes in a supply chain are divided into two categories depending on whether they are executed in response to a customer order (pull) or in anticipation of a customer order (push). Supply chain processes fall into one of two categories depending on the timing of their execution relative to customer demand.
This isomer global view of how supply chain processes relate to customer orders. The relative proportion of push and pull processes can have an impact on supply chain performance. Push/pull boundary separates push processes from pull processes.
- Pull: execution is initiated in response to a customer order (reactive)
- Push: execution is initiated in anticipation of customer orders (speculative).