Assalamualaikum,
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| Supply Chain Management Diagram |
The above diagram shows how a product is generated starts from suppliers up to customers. An example senario is demand for the fresh harum manis mango from Thailand increased dramatically in the market. The fruit seller who are aware of the high demand for this fruit then purchases the harum manis mango from the dealer from there. The dealer purchases the fruit from various farmer which then will be supplied back to the fruit seller. This is a repetitive process.
What is Supply Chain Management ?
- A supply chain is the stream of processes of moving goods from the customer order through the raw materials stage, supply, production and distribution of products to the customer. All organizations have supply chains of varying degrees, depending upon the size of the organization and the type of product manufactured. These networks obtain supplies and components, change these materials into finished products and then distribute them to the customer.
The Process of Supply Chain of A Product
- The first step is obtaining a customer order. Customer satisfaction is paramount. As i've mentioned earlier, demand for the fresh harum manis mango from Thailand increased dramatically in the market. So, the raw material here is the harum manis mango.
- The fruit company who are aware of the high demand for this fruit then purchases the harum manis mango from the dealer from there. The fruit comppany act as a supplier for the customer. In the meantime, the supplier will seek to buy fruit with low wholesale price.
- The dealer purchases the fruit from various farmer which then will be supplied back to the fruit company. The process of repackaging will be made to ensure it is in good condition.
- The fruit will then be distribute to retailers.
The Four Basic Components of Supply Chain Management are :
1. Supply chain strategy
2. Supply chain partner
3. Supply chain operation
4. Supply chain logistics
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