Home Supplychain Videos Supply Chain Basics Series Supply Chain is the Future! What is Supply Chain? – Part I

Supply Chain is the Future! What is Supply Chain? – Part I


At this Video, you will learn about – What is Supply Chain?

Learn about Supply chain model from a Supply Chain story.

What is Supply Chain management

Key stake-holders in Supply Chain

Key functions within Supply Chain


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Transcript of video

Decades before, the Competitive Edge for each organization lies in their manufacturing capability and efficiency. Due to wide spread adoption to the best practices on manufacturing from the Toyota production system and the Ford production system within the manufacturing shop floor the game has become all even and the focus obviously.

Has shifted from the manufacturing shop floor to the big picture – the supply chain hello everyone welcome to supplychainway.com I am Alvis Lazarus your Supply Chain coach in this video series we call it as the basics of supply chain we will discuss multiple topics which will help you understand the basics of supply chain. so if you are planning to build a supply chain career interested in knowing what is supply chain and if I get into a separation carrier what kind of experience I will be getting those kind of questions will get answers part of this series so specifically in this video what we’re going to see is. What is supply chain who are all part of supply chain and what are all the key activity is part of supply chain answers to these three questions through this video so let’s get it started. So what I’m going to do or to keep it really simple I’m going to tell you a story and then explain what is a supply chain so this is a story of a mother who wants to send home to lunch her son.

on a daily basis okay so let’s hear the story so that is a mother and there is a son as you can see from the picture that the son is doing his schooling and the mother wants to send home cooked food to don on a daily basis. Okay so now the step one.

What happens is is the mother sits with his son and ask him what are all his favorite dishes, she wants basically the mother notes down all the favorite dishes of her son for lunch and all the relevant details around that. So that is the step number one and once she does that basis that the mother plans for all the needed ingredients to prepare the food for her kid. The step #3, the mother basis the list of ingredients she decides the vendors who can get those ingredients for her. Though I’m showing a single picture of a vendor there could be few vendors the mother can go and buy those ingredients in few cases the vendor can come in and deliver those ingredients to the mother. The mother decides on the dish and timings basically she has to plan for the month or at least for the week to tell okay this is what my son needs for this week once the planning is completed, now the mother buys all the ingredients from the.

Vendor. so now she’s ready with all the ingredients Now what happens the son tells his mom on a daily basis what he needs as lunch for today Basis that the mother prepares the lunch on a daily basis and keep the food ready Once the food is ready.

What is still remaining is the food should reach the son at the right time unfortunately she couldn’t get the food to the school so what she has done is took the help of her neighbor to get the lunch to her son so that completes the story of a mother who wants to send home-cooked lunch to her son. Now what we will do we will now translate this into a basic supply chain model so the mother notes down all the favorite dishes of her son for lunch that is actually demand planning and bases the demand that is Basis what her son says she’s she’s planning for all the ingredients that becomes the supply.

planning and basis the supply plan she is then telling the vendor what are all the things she needs that becomes the purchase order and deciding on the dish and timing depending on the time she needs for cooking and depending on the weekly and the monthly plan that becomes a production order and buying all the ingredients from the vendor becomes the sourcing the son telling his mom what he wants for the day that becomes the sales order and the mother preparing the food is the manufacturing and the neighbor getting the food to school that becomes the distribution okay so these are the activities part of the supply chain now the mother the son the vendor the neighbor what are all the roles actually they played part of the supply chain is what has to be revealed. So the Son.

Is the customer and the neighbor is the distributor or retailer the mother is the manufacturer and the vendor is the supplier. Now the story has been translated to a basic supply chain model so now I’m going to explain you how does supply chain model looks like so these are all the key stakeholders within the supply chain supplier manufacturers retailer and customer Though I have said as a retailer that could be multiple levels of Distributors and retailers part of the distribution Channel once we started discussing on specific industry then I will explain and elaborate on the role played by a distributor on a retailer within the overall supply chain. These are the four key stakeholders within the supply and the supply chain engine starts with demand planning giving the demand forecasts to the supply planning and basis the supply plan the purchase orders and production orders are released based on the purchase order the supplier.

Ships all the parts to the manufacturer the manufacturer converts Parts into finished goods the retailer sends the sales order to the manufacturer and the manufacturer that will send the finished products thtough the distribution channel to the retailer the customer’s touchpoint is the retailer so the customer places the order on the retailer and gets the Products if it is an online retailer the product is shipped to the customer if it is an offline retailer the customer pick up product from the so this explains the basics of Supply chain model I’m sure you have understood this clearly if you have any follow-up questions or if you have any clarification feel free to use the comment section down to this video to ask those questions I would be happy to answer those for you thank you so much.

Alvis Lazarus It's all about Supply Chain! SupplyChainWay is first of it's kind Portal in Supply Chain. It is a community of Supply Chain Professionals and a one stop source for Supply Chain education, knowledge sharing and discussion.


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