Supply Chain Network is the network between the source of the product to the customer. Each company needs to distribute the product at a low cost to the customer. So we are going to see supply chain case studies of products in the coming sections. Supply Chain Network is very important to understand the cost and time required for the product to reach the market. There is not any definite way to design a supply chain design as it depends on the distance between the source of the product and market.
Case Study Of Supply Chain Network Of Household Goods
As we all know supply chain works in very basics i.e., the producer takes the raw material from the supplier then they produce the product then they sell to the customers. Every company has its supply chain network model. Let us look at an example of a household manufacturer. The manufacturer of cookware, dinnerware, or household tools wants to change its supply chain management system.
- The first step taken by the manufacturers is to create a team to design the best supply chain management system for the company and also looking at the major locations and gather all the data they needed to create the supply chain system.
- In the second step, the data is gathered, analyzed, and developed to a suitable chain network for the company. Meetings are progressed to validate the plan for the management system.
- Third, a trial has to be prepared to test the accuracy of the plan. Then, focusing on that a long term plan is developed.
- Fourth, also looking at other alternatives to get the best plan for the supply system. All the alternatives are compared to each other to get the best model for the supply chain. Overall the best model is chosen in terms of cost and service of the performance, after that it is evaluated practically.
There is not any plan which can be used forever. After each interval of time, the company has to modify its plan according to the company’s performance and demand.
Supply Chain Design for Footwear Company
The supply chain of footwear company mainly focuses on three major channels:-
- First, they focus on retail outlets so that people can purchase products physically from there. It can build trust and relationships with customers which is beneficial for the company. Choosing one of the best locations for retail outlets is one of the biggest challenges for the company also.
- Second, B2C sales directly target potential customers. It is very beneficial for the company as it reduces the cost of transportation but not profitable all the time. Many companies also hire third-party companies to manage B2C sales.
- Third, E-commerce websites are one of the favorite platforms for many footwear companies as they drive sales campaigns which boosts their sales and profit of the company. It does not require any transportation system by the company as all the distribution system is managed by the e-commerce company.
Supply Chain Design for Pharma Company
It is very difficult to design the distribution system for medical or pharma companies. It is strictly bounded by rules and regulations of the government as well as temperature. It has to be shipped in special packages as well as within a tight delivery schedule system. The supply chain of the pharma industry depends on the current demand and forecast information from the customers.
The manufacturers can not create an optimal supply chain as there is a fluctuation of demand from the customers from different locations. They mainly focus on improving customer delivery performance and reduce transportation costs for a more optimal region.
Supply Chain For Safety Equipment Company
The supply chain of safety equipment depends on the demand from the market. Not everyone needs a safety kit so its model varies from time to time. For example, if we are looking at the corona virus pandemic situation, then we need more amount of safety equipment to doctors to keep away from infectious viruses. The company needs to develop the best model for this situation.
On the other hand, in normal days there is very less amount of demand so they have to develop the plan for that situation. Other safety kits like a fire extinguisher needs to be transported in a very safe manner so that no harm is done to the equipment. The company has to design the model of the supply chain according to the product and demand from the market.
Before making the model of the supply chain the company has to investigate the present situation and also looking for an alternative of the plan. The company has to do in-depth analysis and physical design and make detailed information about the situation.
Supply Chain Network for an Electronics Company
The manufacturer of an electronics company needs to be up to date with the model of the supply chain network to compete within the industry. To give focus on an area and prioritize the supply chain.
- In the initial phase, the team of supply chain gathers data from the targeted audience and market and also from their direct competitors. They compare all the data to get the best model of the supply chain.
- The initial stage of the model is an opportunity to cut the unwanted transportation spend and identify the saving opportunity while improving the model of the supply chain.
- The company can also reduce the number of carriers by improving the product packaging, labeling, and tendering process. By improving the product packaging it can reduce the cost of shipment from different locations.
There is a lot of different supply chain design for each product. The company decides according to the demand of customers and the market. They implement the best possible plan in that condition. It can vary from company to company.
As stated above there is no one size fits all solution for the supply chain industry but rather you need to stay up to date with the latest trends and be willing to update to the newest technologies whenever the situation arises. We hope this article gave you some insights on the initial steps you have to take to be successful in the industry!
What is a supply chain?
In simple terms, supply chain is the process that encompasses everything from the delivery of source materials from the supplier to the manufacturer through to its eventual delivery to the end user.
What are the 5 basic steps of supply chain management?
The basic five steps of Supply Chain Management to keep in mind when strategizing are Plan, Source, Make, Deliver and Return.
Are supply chain jobs in demand?
Yes, there will never be a time when this will go out of fashion. The process will only get more automated with time.
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